Yesterday, a journalist writing for a financial magazine asked me this question:
What are the biggest ways Australians waste money when it comes to their finances?
Here’s my answer:
(This post continues from 13 Signs You’re Getting Bad Insurance Advice (Part 1).)
The recent CFP v Couper court case showed you could get insurance advice that leaves you uninsured and unprotected.
Here are 7 more signs you’re getting bad insurance advice:
Noel Stevens was dying when CommInsure rejected his insurance claim. The NSW District Court ruled the insurer was right to turn down the claim.
Mr Stevens passed away, but not before taking Commonwealth Financial Planning to court as he believed he had been given bad insurance advice. The court agreed.
Commonwealth Financial Planning (CFP) appealed the ruling and recently lost when defended by Noel Stevens’ daughter (CFP v Couper). The evidence in this case showed it’s possible to receive insurance advice that leaves you uninsured, where you were previously covered.
This client had no idea his insurance advice was poor. The CFP advisor didn’t know he’d given the wrong advice. In fact, the advisor followed a process you could find in any bank across Australia.
When your advisor is none the wiser, how can you check you have received proper advice?