01 Dec Do Life Insurers Really Pay Claims?
Do life insurers really pay claims?
There’s a common perception that life insurance companies will do everything they can to avoid paying claims.
In fact, 92% of all life insurance claims are paid in the first instance¹.
As long as you fulfill your duty of disclosure when you apply for cover, and you’re covered for the medical condition you’re claiming for, you should be confident your claim will be paid.
Will I still be covered if my health changes?
Once you start your cover, what you are covered under your life insurance for won’t change – even if your health deteriorates.
In fact, you don’t even need to tell your insurer about a change in your health unless you intend to make a claim.
Why are some claims declined?
The main reasons life insurers decline a small percentage of claims are:
- claims outside the policy definitions
- claims are specifically excluded from the customer’s policy (e.g. due to pre-existing medical conditions)
- non-disclosure of a pre-existing medical condition. In this case, the insurer will generally take into account what that condition was, what cover they would’ve offered if they knew about that condition, and whether that condition is related to the claim.
- fraudulent claims.
Master Your Money Now is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL No. 236523. Head Office: Level 2, Cnr Maroochydore Road & Evan Street Maroochydore QLD 4558 Phone: 07 5406 5000. And is an Authorised Credit Representative of Outsource Financial Pty LtdABN 42 131 090 705Australian Credit Licence No. 384324 Birkenhead Point Brand Outlet 19 Roseby St, Drummoyne NSW 2047. Infocus Securities Australia Pty LtdABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523
Head Office: PO Box 1856 Sunshine Plaza QLD 4558 Phone: 07 5406 5000
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