Is the Record of Advice different for life insurance?

The FAIS duty is the same, but life advice turns on the amount, term and structure of cover matching a documented need — and replacement of existing cover carries extra scrutiny, so the ROA must record the comparison and the client’s understanding of it.

What must a replacement Record of Advice show?

That the client was told what they give up (accrued benefits, new waiting periods, fresh underwriting) and the reasons the replacement is still in their interest — with the comparison recorded.

Can Broker AI compare an existing policy to the recommendation?

Yes — upload the existing-policy documents and it structures the comparison the replacement ROA needs, alongside the recommendation.

/ LROAGUIDE

Record of Advice for life & long-term insurance

For life and long-term insurance, the Record of Advice has to connect a needs analysis to the cover recommended — the amount, the term, the structure and the replacement implications. Here’s what a compliant life ROA covers, and how Broker AI drafts one from the client’s documents.

Reviewed 7 September 2026 · Broker AI team

What a life / long-term ROA must record

01The needs identified — income protection, debt cover, dependants’ needs, estate liquidity — and how each amount was calculated.
02The product(s) recommended, the sum assured, term and premium pattern, and why the structure suits the need.
03Any replacement of existing cover: the comparison, the costs of replacing, and why it is in the client’s interest.
04Disclosures: exclusions, waiting periods, premium escalations and the consequences of non-disclosure.

Replacement — the highest-scrutiny area

Replacing an existing life policy attracts specific FAIS scrutiny. The Record of Advice must show the client understood what they gave up (accrued benefits, new waiting periods, new underwriting) and why the replacement still serves them.

Draft a life ROA from the client documents

Broker AI reads the needs analysis and existing-policy documents you upload, structures the recommendation and — where cover is being replaced — the comparison, and drafts a FAIS-aligned Record of Advice you review and finalise. POPIA-aware, built for South African brokers.

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Frequently asked questions

Is the Record of Advice different for life insurance?: The FAIS duty is the same, but life advice turns on the amount, term and structure of cover matching a documented need — and replacement of existing cover carries extra scrutiny, so the ROA must record the comparison and the client’s understanding of it.
What must a replacement Record of Advice show?: That the client was told what they give up (accrued benefits, new waiting periods, fresh underwriting) and the reasons the replacement is still in their interest — with the comparison recorded.
Can Broker AI compare an existing policy to the recommendation?: Yes — upload the existing-policy documents and it structures the comparison the replacement ROA needs, alongside the recommendation.

This page is general information about FAIS record-keeping, not legal or compliance advice.