ASIC concerned over TAL funeral insurance ads
The Australian Securities and Investment Commission (ASIC) has raised concerns with TAL Direct (TAL) over its advertising of its funeral insurance.
ASIC believes consumers may be misled by the advertising.
ASIC was concerned TAL's advertising of its product did not adequately reveal or explain premium increases and stepped premiums. It was also concerned the qualifications surrounding advertised prices were not prominent enough and that quoted prices were not representative of the imagery used in the advertising, including the age of the actors.
"ASIC generally considers there are features of funeral insurance that can be particularly difficult for consumers to understand such as increasing premiums, and that premium payments can exceed the actual benefit to be paid out under the policy," ASIC Deputy Chairman Peter Kell said.
ASIC began discussions with TAL and other funeral insurance providers after an ASIC report released in July 2012 said consumers did not fully understand funeral insurance products.
AUTHOR
Malavika Santhebennur
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
