Are you paying too much for your life insurance?
Have you seen a TV ad for life insurance lately? Chances are that you have, there seems to be so many of them at the moment. The fact that they are on so often indicates that they are working.
Now Australia does have a problem with under insurance so perhaps it is a good thing that people are thinking about insurance. Most Australians now have some life and disability insurance as part of their superannuation policy but this is often not enough for their needs.
A common feature with the TV ads is that the process is quick and simple. They also suggest that the policies are cheap. So are you getting value for money?
A wise man once told me “quick, cheap and good – you can have any two but not all three”.
The main difference between the policies advertised on TV from ‘direct insurers’ compared to the policies you can arrange from a traditional insurance company or financial adviser is the underwriting. Underwriting is the process the insurance company goes through when considering an application in order to assess the risk of having to make a payment for a claim. Traditionally, underwriting is completed at the outset as part of application process. This sometime requires medical checks or blood tests and may take some time and effort, however, the reward for that effort is that you know that you are covered.
The companies advertising on TV keep by leaving the underwriting until the time of claim. The downside with leaving the underwriting until the time of claim is that it is too late to find out if you don’t qualify or that you have an existing condition that isn’t covered. The whole point of insurance is that it pays you when you need it!
Whilst it may take a little time and effort to consider your options thoroughly and work through the underwriting process you will have the comfort of knowing what you are covered for with a comprehensive insurance policy.
If you would like to discuss our insurance needs then please contact us on 07 4952 5228 or admin@stamford.net.au
Alternatively, check out our handy online calculator http://www.stamford.net.au/online/
