Life insurance and income protection: do they really pay you when you make a claim

You don’t get life insurance or any type of insurance that protects your income because you love giving money away, but sadly this is the way some people feel when they try and make a claim. Their insurance company is not there when they needed them most. We lift the lid on the insurance companies and see if they do pay claims, really.

The first thing that we need to make clear is sometime the financial planning industry gets lumped in with home and contents insurance and car insurance and headlines and current affair type program’s talking about a General Insurance company dealing with unpaid claims from flood and water damage to property which is frequently making headline news.

Statistics prove that life insurance companies pay the majority of all claims and the very few claims that are not paid. The highest was just under 5% of claims.The reasons for non payment are usually illegitimate claims resulting from not disclosing important information to your insurance company or your financial planner, fraud or people attempting to claim for events that are they have not been offered cover for.

To be clear there is no company which will pay a claim because of fraud or deceit, but If you choose the right financial planner they will make sure you get paid a claim you rightly should be paid for and also make sure you don’t get exclusions on your policy which you should not have been applied. Your financial advisor should make the process smooth and easy as possible.

Statistics show that Australian Life Companies paid out around $4 Billion in claims, or in other words, nearly $11 million paid in claims each day of the year in 2011.

That’s a lot of money for people who didn’t want or expect to claim, but had to. The types of claims we’ve seen recently include the following:

More than 30% of all claims including total and permanent disability come from cancer.

Of course if we just look at total and permanent disability claims the most popular claim are muscular skeletal problems like arthritis, osteoporosis.

A claim that is become more recognised is psychiatric conditions like depression.

So we suggest you fill in our 2 minute form and see if there is something we can help you with. We can connect you with the most appropriate financial advisor in Melbourne, Sydney, Queensland and any other city you may be located in to help you now. You’ll be glad you did.