“Smart Money : Financial Foundations for a Resilient Future”
NFO TIPS TO PROTECT YOURSELF AGAINST LIFE INSURANCE FRAUD
Ask for a copy of your policy if you don’t have one, and read it thoroughly. Make sure you understand the terms and conditions and contact your insurance company if you have any questions.
Funeral and life insurance policies do not work like a savings account. If you want to cancel your policy, you will not get your premiums back since you have enjoyed cover while the policy was in force.
If you are buying a funeral policy from a salesperson always make sure that they have a licence from the Financial Sector Conduct Authority (“FSCA”), previously the Financial Services Board (“FSB”), to sell insurance. Ask them to show you their licence. If you have any dealings with a salesperson, the administrator or the insurer, keep written proof of the dealings and always make sure that you know who the insurer is.
If there is an application form, fill it in yourself if possible. Make sure you read everything on the form including the fine print. Ask questions if anything on the form is not clear.
If there are any questions or declarations about your own or any other insured person’s health, occupation or personal information, make sure that you disclose all the important information. If you later make a claim and the insurer finds out that you did not disclose all the relevant information on the application form, they could cancel your policy or reject your claim.
If you are taking cover on another person’s life (other than your own), make sure that you describe the relationship between yourself and that person correctly, as your insurer may decline your claim if you provide incorrect or incomplete information, or if you have no insurable interest in that person’s life.
Make sure that your premiums are paid on time every month. This is your responsibility, even if you are paying by debit order or stop order. Keep copies of every proof of payment. If the premium is not paid, your policy may be terminated or any claim you make may be rejected. There is a grace period (15 days or longer depending on the policy) after the due date for each payment when you will still be covered under the policy, but after the grace period has expired, no benefits will be paid.
Insist on being sent a policy or a policy summary when your application for insurance is accepted. Read this document and make sure you understand it. If not, or if you find any mistakes, contact your insurer or broker immediately.
If you are not happy with a new insurance policy, you have a 30-day “cooling-off” period after you receive the policy or summary to cancel it without penalty.
When the person covered by the policy dies, the claimant must submit the claim as soon as possible. If the claim is late, the insurer can refuse to pay it. The required documentation must be submitted before the insurer will consider a claim – this may include a computerised death certificate.
It is important that family members know about your life insurance policy, who your insurer is, and where to find a copy of it.
Check your funeral policy for the applicable waiting period as no claim is payable if the insured person dies during this period.
