Banking Royal Commission - Life Insurances
The Royal Commission has now turned its focus on the Life Insurance industry. The hearing is set to run from the 10th to the 21st of September. This round of hearings considered issues associated with life insurance and general insurance along with the regulatory environment of the insurance industry.
During the first few days of hearings, it was found that some companies were engaged in highly aggressive sales techniques to further their revenue. Most of such examples were companies selling life insurance products over the phone; making cold calls to sell life insurance products over the phone. Furthermore, these companies would set up their employees’ KPIs and targets in a way that it allowed for aggressive selling behaviours, neglecting the best interests of the client.
So, clients could quite often end up having a product that they might not need. Or even worse, a client might think that they are covered, only to find out when they go to make a claim that they are not. What are the chances that you would remember all the terms and conditions that was read over the phone? Did the client have a chance to read the Product Disclosure Statement (PDS) before they bought their policy? Can the agent claim that the product was in the best interests for their clients? Does the client fully understand what they are and are not covered for?
These revelations highlight the importance for Australians to turn to a professional financial adviser when it comes to their Life Insurances. Financial advisers have a fiduciary duty to act in the best interests of their clients. They do this by getting a detailed understanding of their client’s situation and their goals. They will then form recommendations which are tailor made to the client’s situation.
As advisers, we are passionate about helping Australians navigate through the life insurance landscape, provide them with a tailor made solution and to see them through when times are tough. If you would like further information about your life insurance options, or if you would like a review of your current policy, contact your adviser today.