If you are in the market for a life insurance policy, the first decision you are going to need to make is which life insurance company you are going to partner with. Your life insurance policy is your family's lifeline in the event of your death and your choice of life insurance company is an important one. Here are a few guidelines.
- Research the company online. What have consumers, bloggers and newspaper articles said about the company in the past? www.hellopeter.com is a good place to start
- Speak to friends and family about who they purchase their life insurance from and who they would recommend
- Ensure that the company is compliant with the Financial Advisory and Intermediary Services (FAIS) Act. FAIS regulates the financial services industry by ensuring that all providers are licensed and are subject to a code of conduct and enforcement measures. You can check if a provider is FAIS compliant at www.fsb.co.za
- Ensure that the company is registered with the Financial Services Board. Look for your provider on the FSB website under Insurance > List of Registered Insurers
- Look at the quotes that you receive from a company. Are they written in plain, simple English?
- Can you do business directly with the company or do you have to work through a broker? What option are you more comfortable with?
- If you can work directly with the company, what options are available to you? Can you work with them via a call centre, do they have a mobile site and website? Can you request quotes, buy your insurance and view and make changes to your policy online and on your cell phone and not just via their call centre?
Lastly, remember to request quotes from a number of providers before you settle on a provider of your choice. Make sure that you understand the terms and conditions of your policy, claims procedures and any exclusions imposed by the provider, i.e. any circumstances under which they will not provide you with cover.