Life Insurance, do you know what you are covered for?

Life Insurance, do you know what you are covered for?

March 26th, 2019

I am going to dive straight into the issue today – you may have exclusions on your life policy if you brought it through a BANK!

I have been working with some clients over the last week or two and they have a product from one of the main trading banks. We were doing a review as they were looking to see if the current Protection Plan they have will work for them at claim time.

As a starting point we do a review of the current covers, how that stands in relation to their situation now, (remembering that insurance is often brought as a ‘snapshot in time’ and not with future changes factored in). The product they had has no cover in certain areas, medical conditions are not covered for between three and five years and then they have a list of permanent HAZARDOUS ACTIVITY EXCLUSIONS.

Yes, there are certain activities that are excluded from all covers. We like to know what’s covered and for the majority of our clients, as long as these activities are disclosed at the time the policy is taken out, then if you do them – then you would be covered.

Can you be sure you will never go in a cave deeper than 30 meters – how deep are the Waitomo Caves? Or how high will you be when you help paint the neighbour’s roof.

With this product there would be no claim if the activity were to kill you.

So really sorry Mr Bank but I want my clients to have a lot more certainty than that, I don’t want them to have to say “NO SORRY MY INSURANCE WILL NOT COVER ME FOR THIS, or SORRY I CANT GO INTO THE CAVE AS ITS TO DEEP, or SORRY DAD I CANT HELP YOU PAINT THE ROOF”

I then looked at one of the main providers* of direct sales be it insurance online or telephone sales:

And yes, again there was a list of exclusions for their life cover:

  1. What exclusions apply? We will not pay claims if your death occurs as a direct or indirect result of:
  • suicide, whether you are sane or insane, within 13 months of the date your Cover Starts or Restarts;
  • you participate in a criminal or illegal act;
  • being in a country or region in which the New Zealand Government has advised against all travel or advised that all non-essential travel should be deferred.
  • Human Immunodeficiency Virus (HIV) or Acquired Immunodeficiency Syndrome (AIDS);
  • you engage in a work or a lifestyle activity that involves:
    • explosives,
    • weapons,
    • heights above 20metres,
    • depths below 30metres
    • or speeds above 130km per hour other than as a fare-paying passenger on a commercial airline.

So if you are in a car doing 130 kms then are you covered – it would seem not.

*from their 2013 policy document online 21/2/2019

Now let’s look at one of our main insurer’s exclusions, and where we will advise with confidence at the time of claim:

ASTERON LIFE 3.1.4** When we will not pay the Life Cover sum insured or Funeral advancement benefit.    We will not pay the Life Cover sum insured or Funeral advancement benefit if the insured person’s death is caused by an intentional self-inflicted act within 13 months of any of the following:

  • the Life Cover commencement date
  • an increase to the sum insured (for the increased portion only)
  • the most recent reinstatement of the Life Cover.

**Asteron life Policy Document 2018

Yes that’s right one exclusion. So are you really covered with your current life cover?, if you have no idea and would like to find out – have a chat to us today.

We are only a phone call away.

Grant Uridge and Thurl Gibbs

 

Contact Thurl directly on:
[email protected]
Mobile: 021 952088
Contact Grant directly on:
[email protected]
Mobile: 027 4488689