The Financial Services Authority has recently carried out a review of the way in which information and advice is given to retail customers purchasing financial products. One of the products which they considered was the sale of Critical Illness Cover.
Critical Illness Cover is often taken out by people taking out a mortgage, usually as part of a term assurance policy. It may also be purchased as a stand-alone product. The policy will pay out a lump sum if the borrower becomes seriously ill with one of a list of specified illnesses, commonly cancer, heart conditions, stroke etc.; this will help with loss of earnings due to the illness and general life-style changes which may be the result of the illness.
Firms selling critical illness cover are required to comply with certain standards and although these are being met reasonably well, the survey showed that there could be some improvement in the way in which they could help the customer to gain a better understanding of the product.
The FSA have visited firms and employed mystery shoppers to look specifically at how compliancy is working out with regards to sales processes when selling critical illness cover.
Supervision visits were paid to 42 firms. Whilst in the main these were financial and mortgage advisers, they also included banks, building societies and insurers. The market research company, Research International, carried out 80 mystery shops to 51 firms in total, to report on what actually occurs.
Director of Retail Firms, Sarah Wilson, has said that whilst many of the findings were positive, a few problems had been identified. Initiatives have been launched in order to deal with them. The fair treatment of customers is of prime importance, especially with regard to making policy application forms and documents more easily understood. So far these changes seem to be helpful.
critical illness cover quote cover is, however, complex and some of the problems cropped up in the context of the financial promotion of the schemes and general insurance documentation. Customers sometimes have difficulty in comprehending exactly what they are being sold. Therefore it is difficult for them to assess whether this is the correct cover for them, or whether a payment of income protection product would be more suitable.united healthcare indemnity
The needs of the customer have to be taken into account and there should be a careful assessment of the type of protection which they need. However, where there were two or more types of policy, the cost was sometimes the only aspect taken into account when recommending the most suitable one. Other factors may have been left out of the equation, such as conditions covered or whether there were other products more suited to a particular client’s requirements.
Miss-selling is a risk, but most firms had taken reasonable measures to manage this. There were found to be good training programmes and risk based monitoring.
As is the case with prime mortgage payment products, customers have time to consider their options before they make the decision to purchase the cover.
The results of the survey offer some reassurance that the needs of the customer are being protected and any changes to be implemented can only offer change for the better.
Protect Yourself With Health Insurance
Health insurance can be one of the most important things you choose in your lifetime. It can make the difference between proper health care and almost no care at all. If you follow the tips in this article, you will be successful in choosing a good health care company to maintain a great life.
When considering a health care insurance plan from your employer, be sure to check if your prescriptions are still covered in the coming year. The supported brands and types of medication can vary from year to year. Also, always choose a generic brand if possible. Also be sure to see if there are any discounts such as having your prescriptions sent via mail.
Sign up for a flexible spending account. If you are paying for your own health insurance costs, consider the move to an HSA.compare christian health sharing plans An HSA is a Health Savings Account that you can contribute towards, tax free, and then withdraw the money, also tax free, for any medical costs you face.
Learn the strict coverage details of your health insurance policy. While your policy may state that it covers emergency visits, some hospitals and doctors charge separately for your care. Your policy may cover the hospital’s charges, but not the doctor’s. If you are unsure about how your company handles this, call them and ask.
Do not mix your politics with your health coverage. While you might believe that people are entitled to receive free health care in a civilized nation, you should not abstain from coverage simply to prove a point. Illness doesn’t care about your political views, so always make sure you’re covered.
Don’t sign anything without reading the fine print. If you find an affordable health insurance plan that works for you, get a full copy of everything before paying for it. Study the entire policy, keeping an eye out for any exceptions or clauses that may deny you coverage. If you don’t take the time to do this, it may come back to haunt you in the future.
Take advantage of a little-known fact about family health insurance in arizona: you may be able to get a “free look,” or test-drive, of an insurance plan. When shopping around, be sure to ask if the provider allows this test period, and make sure that you understand any restrictions or requirements for requesting a refund if you are dissatisfied.
The tips offered in this article are meant to help you with your health insurance needs. Although they won’t explain everything you need, they will get you started in the right direction and help you to find and maintain your health insurance needs. Remember, this is one of the most important decisions you can make.