Churning

Dear Editor I am of the "old school" when churning was a no no... your commission got zapped if you churned.

With the new dispensation and "peoples rights", I am still extremely reluctant to suggest a client cancels an existing policy in order to sell him a new one.

Unfortunately from time to time a client cancels the policy without a courtesy call to advise the existing Broker.

Recently however I did receive a call from a client who is in his late 60's informing me that he had cancelled hos Old Mutual Greenlight as another company could give him an extra R80000 cover for the same premium.

I have ascertained the initial premium is more or less the same,and that the broker involved did explain that the new product is age related and premiums would increase accordingly. Does the client fully understand the long term implications ? Methinks not...

Having advised the family for the past 10 years and thus knowing their financial situation....no pension, inadequate savings ,still working on a job I am deeply concerned how this person will be able to maintain the obligatory premium increases.

I have explained this to no avail.......the "sharp talking salesman" has won.

"people wish to be deceived" it seems.

Not to mention this type of broker who brings the industry into disrepute.