Insurance questions to strengthen your cover
More great insurance tips and advice from Barney Ellis at Miplan. To book an appointment with Barney or the team visit their website.
Not many like to read the fine print, so here are a couple of headline issues to review with your adviser.
Are you paying too much for life insurance?
- You may have extra policies in super you are not aware of.
- You may have insurance you can’t claim on because of other offsetting cover.
- You may have cover that is more expensive than it needs to be.
- Industry super cover used to be cheap as chips. Now it’s champagne.
What is covered? What is excluded?
- Make sure your cover gives you the protection you need.
- If you’re single with no debts then do you need life cover? What you might need is income and illness protection.
- Check your policy has the modern illness definitions.
- Recent evidence at the royal commission highlighted a claim declined based on 20 year old cancer treatment definitions.
Default insurance – “I’m ok there’s insurance in my super”.
- These default schemes are an enormous money spinner for the life insurers.
- Check the loadings. Some default schemes class everyone as blue collar and a smoker.
- If you’re neither you could be on a cheaper premium.
- Don’t get caught out by pre-existing medical conditions which may void your policy.
Do my insurances overlap?
- Quite possibly.
- If you’re crook and not at work, you can claim on your income cover, and if its critical illness then also your trauma cover.
- The older you get its statistically more likely that illness rather than accident will be your downfall.
- Spend your premiums wisely.
This is general advice only and does not factor in your particular personal circumstances.