Insurance beyond life – do you have the right cover?
Insurance – beyond life, Trauma, Total Permanent Disablement and Income Protection…
Our lives are presented with many risks, with those risks can be costly impacts. You only need to watch the news to see the impact on people of events beyond their control; losing a home due to fire or flood, having a car stolen or written off after an accident, or getting injured whilst on a holiday. It’s a common reminder to make us think how would we cope financially if left in the same predicament?
Insurance provides the peace of mind we need that in the event of something similar happening; we would be protected to some extent financially by paying a premium for an eventual payout in the event of a claim.
General Insurance is the most commonly known and understood insurance, it comprises of pretty much any insurance that isn’t related to our own lives. It includes things like home, car, contents, travel, pet, business insurance and more. It is most commonly purchased online or over the phone and is seen as generally ‘easy’ to apply for.
However; we know many people will not read their Product Disclosure Document when they purchase and thus put themselves at risk of not being entitled to claim on things they thought they could. We would like to point out some core factors you should think about when purchasing ANY type of insurance:
- Exclusions
If you’re going to skim over any section of your PDS ensure you read this section very carefully. Review the limitations listed in this section and note any that might be slightly applicable to you. You should enquire with the provider if you have any doubts it is better to be safe than to be sorry.
- Waiting periods
Are there any time periods you need to serve before you can claim; this is particularly the case with health and travel insurance. You should review these carefully before signing up particularly if you are switching providers.
- Coverage limits
It is important here to look at ensuring you have both enough and not too much cover. You should ensure you are adequately covered for the necessary costs associated with a claim and ensure that you’re coverage isn’t too excessive that you are paying unnecessarily high premiums as a result.
- Restrictions
Take a look at the restrictions provided for example with health are only certain hospitals/ doctors covered, and for car insurance is it only specific mechanics. Ensure you fully understand any restrictions when seeking out new insurance.
If in doubt always speak to your provider, and ensure you review your requirements regularly. Use our helpful Insurance checklist to assess your needs and whether you might need to dive deeper into your existing coverage.
Valkyrie Private Wealth Management Pty Ltd ABN 78 126 751 335, trading as Oak Financial Planning is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited, Australian Financial Services Licence and Australian Credit Licensee, 232706 (AFSL), 232706 (ACL).
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