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The Importance of Insurance Planning
Getting injured or falling ill is more than just a disruption to your daily routine, it can also put your hard-earned wealth at considerable risk. By implementing a well thought out risk strategy, you and your family can have peace of mind and reassurance that even through tough times you will be able to focus on the task of recovery without jeopardising your wealth.
However, simply having insurance is not enough – it must be suited to your needs. Being aware of the potential risks and financial implications is crucial. In addition, it is also important to understand the key features and terms and conditions of your insurance arrangements so you know exactly what you are and are not covered for.
Claim acceptance rate
A key concern for many people is that their insurance claims may not be paid out when they need it most. However, new data* released by ASIC has noted that over 90% of life insurance claims are accepted by insurance companies. However within their report ASIC also noted that issues were identified in relation to claims being declined for disability policies such as income protection or TPD cover on ‘technical or contractual grounds’.
*ASIC Report 498 Life Insurance Claims.
Not all policies are created equally
Direct online insurance policies or cover that is automatically included in your super fund are generally low cost but do tend to be very basic in what they cover you for. It is these type of basic insurance policies where a disputes may arise come claim time.
We can all be guilty of setting and forgetting, however by taking a small amount of time to review your current arrangements you can potentially save yourself a nasty surprise, let alone thousands of dollars in the event you ever need to make a claim.
Protecting your wealth is as important as growing it and therefore if you have not reviewed your insurance arrangements and would like to know what you are covered for and if it is sufficient, please contact our dedicated team of Financial Planners at McKinley Plowman for a complimentary consultation.
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