Life Insurance Broker - Bloemfontein

[Re83L]

Hi guys

My uncle is in the process of buying the property on which his business is situated.
He therefore needs around R4.5m life cover in case he dies before the bond is paid off.

Now he's already had one quotation, but I'm not too happy with the quality of advice he received.

Therefore, could anyone recommend a proper broker in Bloemfontein, that ISN'T tied to just one company, but will truly find the best price and product for his needs.
I'm an actuary myself and will review his options with him.

What he needs (in my opinion)

• A Decreasing Term Assurance, or Credit Life type of policy where the Sum Assured decreases in line with the outstanding bond amount.
• No automatic cover increase
• No survival benefit
• No guaranteed conversion options
• A broker who is prepared to sacrifice some commission

Otherwise, could you guys maybe post his best possible course of action if I'm getting it wrong, maybe there's online solutions or packaged solutions like Discovery etc available..

I've suggested he inquires with the bank about a possible combined solution.
After that, I'm hoping to find him a proper adviser somewhere in Bloem..

Regards

 

[Jozsef Borbely]

Hi,

The problem is that not many life insurance companies offer a decreasing term policy. In fact I only know of one that does. Brightrock. So using your info as an example: you would have a term policy for the term of the bond that is linked to the amount outstanding on the loan via the interest rate. So the premium decreases over time because the the amount insured has decreased. Makes sense right.

The only financial planning firm in Bloemfontein that offers Brightrock that I know of is CBS. You can get their contact details from their website. http://www.cbsbloem.co.za/index.php

The only problem that you might have is the commission sacrifice issue, but hey you never know if you dont ask. Just call in, explain the situation and hopefully they can assist you.

Good Luck.

 

[Re83L]

Wow, excellent advice..

I certainly won't mind them paying full commission, IF they get decent advice.
It's just that with brokers, only a small but significant proportion of brokers really try and find the best deal for their clients, due to the way insurance companies entice them to sell their products over those of another..

So I would really just like them to find a place that would give proper honest advice.