The recipe used by the majority of insurance companies is one which enables the agent (called a seller) to earn a commission for each policy sold. This is how they make their money so that they can eat. This commission is paid in differing amounts – the first helping is the biggest, followed by regular, smaller ones for the duration of the lifetime of your policy.
Category: Insurance
DIY Life Cover: ‘we repair what your husband has tried to fix’
It is difficult not to be reminded of your mortality if your internet scrolling is regularly interrupted by advertisements for life cover.
Longevity – So much more than Old Bones Creaking at Dawn
One of the advantages of being older, as I told a young friend recently, is that you tend to
become more truthful. You say it like it is, without caring as much about other people’s
reactions.
Fighting the good fight
At a recent CCFM event, someone asked me whether I had ever been sued by insurers for my extreme statements.
Cheaper is not always better
Advertisers have conditioned clients to focus on costs, which is generally a good idea. However, sometimes that is the wrong focus point.
For instance, if a short-term insurer promises the cheapest rates for cover, clients could be tempted to sign up without realising why their premiums are lower. Continue reading “Cheaper is not always better”
One size does not fit all
In our country, financial planning is seen as gender neutral. The reality is that men and women are often not on an equal playing field and this approach can have serious consequences.
Generally, women live longer than men. This means the effects of inflation have a bigger impact on their retirement income, which is particularly concerning because women do not always earn the same as their male counterparts, which effects the amount of savings they are able to accumulate. Continue reading “One size does not fit all”
Shoddy Short-Term Cover
Dealing with insurance companies when trying to settle a claim is a nightmare many of us can attest to. The experience leaves many clients disillusioned, and they tend not to involve their insurers if the damage to their property is minimal.
In two recent incidents, involving MiWay and Auto & General clients, the claimants had no choice but to claim. The accidents were caused when they were rear-ended while stationary at a traffic light. They had done nothing wrong. The vehicles were towed to these insurers’ approved panel beating workshop after the collision. Four weeks later, repairs still hadn’t started on either vehicle. Continue reading “Shoddy Short-Term Cover”
Check Those Beneficiaries
When was the last time you reviewed your nominated beneficiaries? This is one of those things that we don’t really give much thought to.
South Africa’s Best and Worst Insurance Companies
The Office of the Ombudsman for Long-Term Insurance is an independent body to which consumers can complain if they believe they have been treated unfairly by their insurer. In the latest annual report, it is stated that the Ombudsman had recovered R184.4 million in the form of lump sums for consumers from long-term insurance companies.
The Ombudsman said it had received 9,815 written requests for assistance – which is an increase of 6% from the previous year. Of these complaints, 5,018 were chargeable complaints, with 3,491 cases full cases finalised. Three in 29.8% cases were resolved in favour of the complainant.
Continue reading “South Africa’s Best and Worst Insurance Companies”
The Difference Between Fee-Based vs Commission Based Financial Planning
At present, the majority of financial planners in the greater financial planning industry work on a commission-based system. Here, the financial planner works their personal fee into the total cost of the policies and packages to which he or she sells their clients.
Although a typical industry standard, a financial planner working in accordance with a commission-based system faces two challenges: Continue reading “The Difference Between Fee-Based vs Commission Based Financial Planning”