Putting the customer first should be the first priority of every business. Unfortunately, there are still instances where this is not the case, and many unsuspecting insurance clients still fall prey to practices which are unfair and do not put their needs first. This often happens when a client wishes to change insurers. A similar tactic may be used by certain investment companies who are keen to keep their clients at all costs.
Changing Policies – Know Your Rights
There comes a time when it becomes necessary to change insurance or investment policies. Whether your premiums are too high, or your policy is not producing the kind of returns that you need in order to grow your capital, you are entitled as a policy holder to change the type of policy you have or to switch to another insurer or investment company.
While many insurers and investment companies are flexible when it comes to clients changing their policies, some are still determined to retain clients at any cost. In particular, some companies have a dedicated ‘Retentions Department’ which is meant to prevent clients from leaving the company or cancelling their policies. Unfortunately, instead of offering a good alternative policy most companies use their Retentions Departments to scare clients into staying with the company by informing them of the penalties that will be deducted from the value of their policies if they cancel them before the date of maturity.
The Importance of Fine Print
While there are some penalties for cancelling a policy, insurance and investment clients should consult with their financial advisors and read through the fine print before they sign up for any policy. If the Retentions Department tries to levy penalties which are not contained in the documentation or are not consistent with the law, bringing this fact to their attention should cause some of these penalties to be waived.