I have been in the financial services industry for 38 years as an adviser, broker, financial planner and financial consultant. In this time, no claim by my clients on any products I provided them with has ever been contested or declined.
I have made observations regarding public behaviour. One of the most amusing is the action after a purchase. Client A asks me to draw up a financial plan to protect his income in case he can’t work and earn an income, as well as to protect his family should he die. So we insure his life for R4.5m and his monthly income of R35,000. His premium is R2,400 a month, a large investment in his own and his family’s future. Once he receives his policy document he puts it in his drawer and forgets about it.
Two months later he buys a car for R300,000 with monthly repayments of R5,000. On Friday he fetches his new car and goes home to pick up the family. They go to a restaurant and then to friends to show off their new asset (which isn’t an asset at all because it lost a large part of its value the moment it was registered in his name).
How strange people’s attitude is towards insurance and financial products. This, and people’s unwillingness to actually take an interest in their financial wellbeing, works together to form a poor perception of the financial services industry.
John JohnstonGordon’s Bay