BIG Plans Admin March 31, 2017 No Comments

When can you claim insurance?

When can you claim insurance?

Here is an actual claim story from 2011 which an adviser has shared.

His clients were a young couple, with 3 children. They are your typical hard working busy couple, he had his own small business and she was a stay at home mum and the kids belonged to all sorts of after school activities, they were a busy family, even on the weekends.

They had bought a new home a few years before and took out life cover, mortgage repayment and trauma cover, all which were recommended by the adviser.

The couple were contacted each year and offered a review of which they declined, so there was no face time with these clients. These clients lived in another city so it was a little more difficult to catch up personally, but they were less than 100KM away so not impossible to meet.

What happened in the third year?

Around the third year, they approached the adviser for mortgage finance to purchase another home. During the conversation, the husband mentioned that his wife had a double mastectomy about 2 years ago!

You can imagine the advisers surprise!

The reason they did not want to meet for reviews is that it was a hard time for the family and they just were not up to it. Coping with this traumatic time was very difficult not to mention keeping up with business and family commitments.

The client was not aware that she had $200,000 of Trauma Cover which is insurance cover where the insured person gets paid a lump sum payment if they get diagnosed with one of the conditions outlined in the policy and in this case there were over 30 conditions covered.

The client never gave it a thought and it never occurred to them, that they had the cover which would pay in the event of a double mastectomy.

Needless to say, the adviser contacted the insurer to see whether they would consider playing the whole claim, and they agreed to pay the whole claim even though it was 2 years after the double mastectomy which was a condition which qualified for a claim under the trauma cover benefit.The importance of regular reviews

The importance of regular reviews

The point here is that if they had agreed to regular reviews they would have had their claim paid so much sooner which would have reduced the financial stress on the family during that time.

The point here is that if they had agreed to regular reviews they would have had their claim paid so much sooner which would have reduced the financial stress on the family during that time.

Regular reviews will ensure that your cover is appropriate for your current stage in life.

It is also important to note that there was a high level of trust with the adviser. The adviser made recommendations based on needs and not price, the clients took what the adviser recommended and needless to say, the payment did make life a little easier financially.

If you have not reviewed your cover over the last few years then contact me to make sure you have the right cover and that you get what you’re entitled to at claim time.When can I claim Insurance?