Advice firm warns against online insurance
Wealth management firm Centric Wealth has cautioned investors against buying life insurance products online, as their complexity could result in a claim being rejected.
Joint head of risk at Centric Wealth Jon Pillemer said some of the group's clients had purchased life insurance online without seeking advice and ended up with inadequate cover or unsuccessful claims.
Pillemer said not paying attention to smallest of details could end up in a claim being rejected.
"The solution is to purchase life insurance through a risk adviser who is going to focus on more than just the type of your policy and the level of cover," Pillemer said.
"By understanding your personal and financial circumstances, they will be able to assess how these will impact your insurance needs now and in the future," he added.
"They will also regularly review your insurance cover and recommend any policy changes or upgrades as your personal and financial circumstances evolve."
Pillemer said due to the complexity and amount of jargon found in many life insurance products, it is often not clear to clients what cover is being offered and what situations are not being covered by the policy.
"Many people wrongly assume that purchasing life insurance is as simple as going on line, selecting the cover they want, filing in the relevant forms, and paying their premium," he said.
"In reality, insurance is a lot more complex, which is why an increasing number of people end up not being covered even when they should be."
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