Why Don't People Claim on their Insurances?
Written and accurate as at: Mar 25, 2013 Current Stats & Facts
It’s an excellent question that we have asked ourselves and one that we don’t have an answer for.
In speaking with a number of clients recently, we’ve discovered that there have been some who had suffered what they considered fairly minor illnesses or injuries. As a result, they didn’t report their health to us on the basis that they felt they would not be entitled to claim when in fact they were.
It seems a common misconception many people fear is that if by lodging a claim which is not accepted, it may jeopardise any future claims or entitle the insurer to cancel or increase the premiums of the policy. This is INCORRECT.
We take great care to ensure that the policies we recommend for you are appropriate, flexible yet comprehensive, guaranteed renewable irrespective of any changes to your health, occupation or lifestyle. All of this means, so long as you pay the premiums and satisfy your disclosure obligations at the time of application, , the insurer can’t cancel the policy.*(Some conditions apply)
Generally an insurance policy is separated into two components; being core and ancillary benefits. The core benefits relate to the primary objectives of the policy such as a lump sum payment in the event of death, diagnosis of a cancer, stroke etc.
It seems the area of ancillary benefits is where most people are missing out on payments that they are entitled to. Commonly known as the ‘bells and whistles’, these benefits can include:
· Payments prior to having to meet with waiting period.
· Lump-sum payments for broken bones.
· Part payments for time spent in hospital or under the care of a registered nurse.
· Payment upon diagnosis of serious illness.
· Upfront payment for some terminal illnesses, grief counselling, payment for receiving financial advice and many more.
Most of these are features of your policy which you don’t pay extra for.
We understand that people have insurance to protect themselves, their loved ones, their wealth, their home, their future. Unfortunately due to the complexities of insurance, the distractions in life particularly at a time of illness or injury and the misconception of insurers, we are concerned some of our clients may be missing out on payments they are entitled to.
In the event that something minor or major occurs to you or your loved one, don’t try and second guess whether your policy covers you, contact your adviser.
It is our job to understand the intricacies & features of your insurance and to work with the insurers to achieve successful outcomes that get you back on your feet faster and with as minimal financial impact as possible. t is our job to understand the intricacies & features of your insurance and to work with the insurers to achieve successful outcomes that get you back on your feet faster and with as minimal financial impact as possible.
