Dear oh dear, as you may already be aware, that supermarket Countdown is now selling insurance products.  Sadly the insurance underwriter they are in cahoots with, well I’d avoid that one like the plague – just saying.

And dear I say it, well it’s true, even a bank will do better than a supermarket in this area. A supermarket selling insurance – one word with a multiplier effect: DANGER DANGER DANGER.

Danger Danger Danger

Will Robinson, I am digging a hole for these worthless supermarket insurance policy documents.

To digress, I was invited into the home of a new client the other day, a hell of a nice guy with a wonderful family.

It was difficult for me to tell the truth in respect to the covers he had already with a dorky bank (nobody likes to shoot another down – even the banks product).  However not a good cover range, and not really worth what he was paying for – he had clearly been stitched up by the bank staff.

I had a duty of care to outline the potential problems with the clear ‘lack’ of cover he has, compared to what is available in the marketplace of insurance – he felt a little embarrassed and that was not my intention, but at least he has the ‘real’ facts now.

I could go on and on as I do about banks in New Zealand, especially how they tuck up university students and get them in the debt trap as soon as they turn 18 with a credit card and an overdraft facility – but I’ll refrain for now, let’s save that for another time (next week).

Risk insurance (life, trauma, income protection etc) with a bank is dangerous, yes, I say dangerous.  They are interested in only one thing – what they can earn from you – and at claim time you will literally be on your own, without anyone going into bat for you.

Here’s an excerpt from one of my other insurance web-sites explaining the danger in brief.

Got your Insurance with a Dorky Bank?

B-udget
A-ssurance
N-egligible
K-nowledge

This is by far the greatest mistake individuals make when taking out any insurance product that a bank provides. Typically banks provide watered down insurance products so that their margins (commissions) are higher.

Also it is a marketing tactic designed to ‘ring fence’ you, making it difficult for you to move to another bank due to the additional hassle of changing everything.  The more products you have with a particular bank, credit cards, savings, insurance etc, the more likely you’ll stay with them even when something goes wrong due to the logistical nightmare of switching to another bank.

Sadly too, in the event of a claim, you’re then directed to a call center as opposed to having an adviser with specialised knowledge to assist you.

IMPORTANT – YOU DON’T HAVE TO SIGN ANY INSURANCE CONTRACT WITH A BANK TO GET A LOAN. If the bank staff pressure or influence you to sign an insurance contract to satisfy another arrangement you have or are undertaking with them, tell them you want to review it so you can compare it. As stated above, typically it will be a watered down version of a product you can get elsewhere and quite often, cheaper.

Greedy Banks

To a bank you are just another ‘number’ adding to their bottom line. To a professional insurance adviser you are a ‘real’ person and you get looked after properly.

Seriously, a ‘good’ adviser is the best insurance you can have, especially at claim time.

There you have it – if you’ve been stitched up by a dorky bank call me, and together we can have a look at what you’ve got to make sure it’s adequate to your ‘true’ required needs. Phone 0800 TRAUMA (872 862) or text 0272 872 862 with the words “call me” and I’ll call you back to your mobile.

PS, also, as an added bit of ‘food for thought’ – there is a good reason why ‘banks’ eventually buy those smaller insurance companies in the market. This is to lock you in, own you, and be true to form by continuing to provide very ‘average’ service.

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