Most people think that Life insurance is one of those insurances you can only claim on once. (When THAT event happens!) What most people don’t know is that today’s LIfe Insurance (as well as TPD, Trauma, and Income Protection) policies can have many additional benefits that can pay you under other circumstances, making it more likely that you’ll get paid by them, and sometimes more than once!
For example, did you know that with some insurance companies, your kids are automatically covered? It’s true! Some insurers will pay out an amount of insurance benefits to you should something happen to one of your children. If they suffer a trauma event (as defined in their PDS) or if they should pass away, you can claim a benefit from your insurance policy. This is usually an amount of between 10%-20% of the value of the policy or up to $50,000. These amounts are in addition to value of your policy, meaning, if you claim this benefit, it doesn’t reduce the value of the insured amount for the parent.
For Trauma or Crisis cover most insurers have very similar definitions, and some can be difficult to claim on. But did you know that many insurers will pay out a partial payment in the event that the trauma event doesn’t reach the full stage for claim? The reason for this is that, these days, health care is improving and people are being diagnosed earlier and earlier. The earlier you get diagnosed, the better it is for treatment and that’s better for you. Some insurers have included partial payments of their trauma cover in the event of early detection/early stage of cancers, heart conditions, etc. What it means is that you’re more likely to get paid out by the insurer, even though the trauma event didn’t get to the point of being life threatening event.
As with all insurance products, it all comes down to knowing what you’re covered for and what your rights are. My advice to you is to read your PDS and understand it. If you are like a lot of people out there who just tick the box which says “I have read and understood the terms and conditions”, without ever actually reading the terms and conditions, then have an advisor you trust who can make you aware of when you can and can’t claim. You might be surprised what you’re eligible for.
As always, if you’d like to find out more about whether your existing policies cover you in these situations or how you can get one that will have this additional cover, please feel free to contact me at firstname.lastname@example.org