Charging life insurance to dead people – how would that work?
Just ask AMP – as highlighted in the Banking Royal Commission, AMP has admitted charging $1.3 million in life insurance premiums to more than 4,600 dead people through their superannuation. This clearly doesn’t pass the ‘pub test’, and AMP are in the process of refunding the $1.3 million premiums.
Thinking of going to a financial adviser to get some independent advice on life insurance for yourself? Perhaps thing again. With advisers receiving commissions of 80% of the first year’s life insurance premiums, independence may be hard to find.