Do you have life insurance? Do you think that life insurance sold by agent/insurance company is not safe? The Life Insurance Association of Malaysia(LIAM) has give statement about this at The Star newspaper.
They said that the regulations has been made by Bank Negara Malaysia to protect the interest o consumers. As the purchase of life insurance policy is a long-term commitment, it is important that policy owners make a careful decision of the life insurance policy that will meet their long-term goals.
The sales process required all agents to undertake the following :
1) Agents will conduct a fact-finding analysis of the needs of their clients and recommend suitable products to meet their financial planning goals.
It is important that customers share sufficient information on how much finances they need to support their families. This includes their long-term goals on children’s education, medical and health coverage, and retirement planning.
This information will enable their agents to recommend a suitable product or range of products to meet their needs.
2) After an insurance product has been recommended, agents will go through with their clients the key features in the Product Disclosure Sheet. Customers are advised to fully understand the benefits of life insurance product that the agent has recommended, the amount of premiums, investment return, disclosure of their health status, exclusions in the policy contracts.
3) Customers are encouraged to seek advice from their agents/insurance companies on other types of policies that are available and make comparisons of the benefits and premium rates before they decide to purchase the plan of their choice.
4) Even after a policy has been purchased, the customer will be given a 15-day grace period to run through thoroughly the policy that he has purchased, and to seek a refund of the premiums paid if the policy is not the paln that he has purchased.
All agents are required to be registered with the LIAM and the industry has instilled a high degree of professionalism and ethical standards in the sale of life insurance.
– The Star