Poor consumer outcomes for direct insurance
By Robert Wright /February 14,2019/
No doubt you’ve seen the ads; “apply over the phone in a single call with no medicals or blood tests”, “cash back after no claim for 12 months”.
Direct insurance may seem simple and easy to obtain. However, some things to consider before picking up the phone:
– How do you know the insurance is right for you? Is it enough? Is it too much?
– Is the ownership structure correct?
– Have you disclosed any existing medical conditions?
This last point is crucial. Most direct insurance policies are underwritten by the insurer at the time of claim. This can provide a false sense of security that the insured believes they are covered when this is not the case. Pre-existing medical conditions may make your cover invalid.
A qualified, experience Financial Planner has an obligation to ensure the recommended insurance is appropriate and relevant to your circumstances. In addition, the insurance application will be underwritten at the time of application. Yes, this can sometimes result in the application being declined, exclusions or conditions being placed on the policy or a premium loading being applied for health reasons. But at least you are aware, and you know what you are insured for…..no nasty surprises at the time of claim!
Before picking up the phone, I encourage you to take a minute to read the attached flyer.