No, in insurance terms there must always be an insurable interest between the insured and the person who took the insurance at the inception of the policy. if you insure a person whom your are not related to or whom there is no insurable interest you run the risk of the policy not paying out.
Underinsurance is when the insured value of your property or item on your insurance policy is less than its replacement value at the time of the loss, damage or theft. for example if you house is worth R 800 000.00 and you insure it for R 600 000.00, then you are underinsured by 25% and only 75% of your loss will be paid out when you claim
Yes, this refers to the repudiation of a claim, the insurer can refuse to pay a claim for a particular reason, for an example
- The insurance contract did not cover the event which led to the loss or damage.
- you acted against what was stated in your insurance contract, for example you did not report the loss within a specified time period.
- The property being claimed for was not insured under the contract.
- or the insurance contract was terminated by either the insurer or yourself or by the application of a law before the event that led to a claim could occur.
Yes, ALPHA does not only use certified financial planners in assisting its clients, it also uses legally qualified attorneys who are able to read and interpret insurance contracts for the benefit of its clients. therefore you as a client you benefit from both the financial expertise and legal expertise of Alpha's professional team.
Yes, most people are paying too much for their insurance because of lack of financial advice, proper financial advice does not need to end with you buying an insurance products. this is the reason why the Financial Services Board insist on people using qualified financial planners. a qualified financial planners knows when not to sell you a group scheme product. and which products are suitable for you. you and your family.
Short Term Insurance
An insurance broker normally sells you an insurance product, even if it is not suitable for you the reason being that he/she is paid a commission for selling the product. while a financial adviser sells you the advice, the advice does not necessarily lead to you buying an insurance product, a financial adviser is paid fees by you for the advice, were there is a recommendation for you to buy an appropriate insurance product and commission is payable the fees maybe set off against the commission. the results is that you pay for the the service rendered and not for the product.
Financial planning if done by a Certified Financial Planer, it involves the six step approach.
- Establish and define the relationship with the client.
- Collect the client's information.
- Analyze and assess the client's financial situation
- Develop the financial planning recommendation and present them to the client.
- Implement the client's financial planning recommendations
- Monitor and review the client's financial plan on an ongoing basis.
This is how a financial planner must conduct his or her services for client, hence Alpha believes that it is impossible to recommend any product or a financial plan after having seen the client once. or in 30 minutes