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It is common practice for service providers to have a promise of excellent service to clients. Ideally each company should communicate to clients what their ‘level of service’ offer is. It is common to find that to your disposal, there is a Client Services Charter. Find out from your Financial Services provider what their promise to you is.
However, while you, the consumer has rights, it is important to recognise that the consumer also has responsibilities. According to the 1Life Charter, your responsibilities when buying life cover are as follows:
- Inform the insurer of any vital changes that increase the risk to the insurer. These changes include place of residence. If for example, you move to another country, do inform us and find out how this affects your cover.
- Disclose any medical conditions you might have, as well as a complete family medical history
- Be honest when answering any of the questions put to you by the insurer, and be honest about how much insurance you can afford. For example, for R500 000 cover, if you earn R3000 it is not ideal to agree to a R1500 premium. Ask the sales consultant to requote for less cover, to get a less premium.
- Pay your premiums to avoid policy lapses. If your policy lapses you will have to go through medical underwriting again. This might mean that your premiums increase or exclusions are applied to your policy.
By withholding information from a life insurance company when you request a life cover quote or purchase life cover your life insurance claim might be rejected or your pay-out reduced. Remember, honesty is always the best policy!
