Check that your Insurance policy will Protect You

9 November 2016
Last week I purchased a new car and contacted my Fire & General broker to arrange the vehicle insurance. They provided me with a quote, but then for some reason I decided to take a closer look at the policy wording. Everything looked fine until I saw that I wouldn’t be covered in an accident if I was using the vehicle in my work as a mortgage or Insurance adviser. (There were also a couple of other professions listed as exempt on the policy). Obviously this was an issue, so I contacted my broker to get a more suitable (And slightly more expensive) product in place. It got me thinking about how many people are possibly unaware of any policy wordings that may mean that they will face disappointment at claim time.
Most Insurances look fairly similar at face value when they are being set up. Often the easiest deciding factor for the consumer is the price of the product, with many people just taking the cheapest option without really knowing what is covered by their policy. But one of the advantages of setting up your Risk Insurance cover through an independent adviser is that they are able to guide you on a range of different aspects from a number of providers to determine the most suitable product for your needs.
One of the guiding principles when arranging Life, Trauma, Income Protection or Medical insurance is that when a claim needs to be made, that the right amount should go to the right person for the right reason at the right time. So, when setting up Insurance cover how do you make sure this can happen? 
The most effective way is completion of a needs analysis to determine the reasons that you need the cover. This can be something as simple as making sure that all debts are cleared upon a partners death, or a recommendation to be used alongside a buy/sell agreement for company owners who may need to put plans in place for the ongoing running of their business in the event of accident, illness or a larger tragedy. But knowing what type of cover is required is just one aspect of getting the right insurance.
Many insurers may not cover certain procedures or treatments. For example, for many years, a number of providers wouldn’t pay out for Cancer treatments using non-Pharmac drugs. This is fortunately getting better with more acceptance of a range of therapies, but could be important to you if you have any family history that may make you more susceptible to such conditions (Or just want to have cover from a provider who may pay-out for a wider range of events!)
But equally as important is the Insurance company’s claims payment history. All Risk insurers start out pretty much the same – sign the paper, pay your premium, get your Insurance policy issued! The big difference is what happens at claim time. It is much more important to know that you will be dealing with a company who strive to make the claims experience as smooth as possible at what can be a very stressful period. Having an adviser who knows the differences in insurers policies and can fight on your behalf during the underwriting of your cover as well as being there to help you through the process at claim time can give you the confidence that you and your loved ones will get the right insurance at the right price to give you the protection you need.

Published In Whakatane Beacon

This post was written by

John White - who has written 90 posts

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