NFO TIPS TO PROTECT YOURSELF AGAINST LIFE INSURANCE FRAUD

1. Read your policy thoroughly. Ask for a copy if you don’t have one. Know the terms and conditions. Ask that it be explained to you. If you have any questions regarding your benefits, or about your claim, contact your insurance company.
2. Funeral and life insurance policies are not 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.
3. If you are buying a funeral policy from a salesperson always make sure that the person has a license from the Financial Sector Conduct Authority (“FSCA”), previously the Financial Services Board (“FSB”), to sell insurance. Ask the person to show you their license. If you have any dealings with a salesperson, the administrator or the insurer, keep written proof of the dealings. Make sure that you know who the insurer is.
4. If there is an application form, fill it in yourself, if possible. Make sure you read everything on the form including the fine print above your signature. Ask questions if anything on the form is not clear.
5. If there are any questions or declarations about your own or any other life assured’s health, make sure that you disclose all the important information. When you claim and the insurer finds out that you did not disclose material information on the form, the insurer could cancel the policy and not pay the claim.
6. Make sure that your premiums are paid every month on time. It is your responsibility, even if you are paying by debit order or stop order. Keep proof of payment. If the premium is not paid the policy may be terminated and a claim may be refused. There is a grace period (15 days or longer depending on the policy) after the due date when cover continues, but after that no benefits will be paid.
7. You must be sent a policy or a policy summary when your application is accepted. Insist on seeing the document. Read it and make sure you understand it. If not, phone and find out what it means. If it does not reflect information correctly, have it corrected.
8. What are your rights if you are not happy with the policy? You have a 30 day “cooling-off” period after you receive the policy or summary to cancel the policy, if you are not satisfied with it.
9. When a life assured (the person covered by the policy) dies, the claimant must submit the claim as soon as possible. Check in the policy how much time there is for a claim. If the claim is late the insurer can refuse to pay the claim. The required documentation must be submitted before the insurer will consider the claim – this may include the requirement of a computerized death certificate.
10. It is important that family members know about the policy and where it is kept in the case of your death.
11. Funeral policies have waiting periods. Check your policy for the applicable waiting as no claim can be submitted in that period of time.