CommInsure problems highlight value of advice
Some of the problems around life insurance revealed in media reports naming CommInsure this week are proof of the value of good advice around life/risk products, according to Integrity Resolutions principal, Col Fullagar.
Fullagar noted that many of the issues so far reference in the reports appeared to relate to group insurance and said this reflected the fact that the lower premiums paid for group insurance products didn't always mean superannuation fund members were getting a better deal.
"Good advice is so important when it comes to purchasing life insurance products and ensuring they are fit for purpose," he said.
Fullagar said it was also important to recognise that while there were frequently issues around old insurance policy definitions, this was a complex area and could prove to be a double-edged sword.
"Some of the old definitions are far more generous than the new ones," he said.
Fullagar said he believed the current adverse media reports were proof of the importance of insurers being required to meet higher standards before being placed on dealer group approved planning lists (APLs)
He said that in circumstances where reputation was one of the key criteria for being included on at one APL, it would have served to filter out problematic insurers.
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