Will my Insurance payout when I need it?

I often wonder ‘will my Insurance payout when I need it?’

‘Life is full of risks – but some unexpected events can really set us back.’

Therefore it makes sense to protect the things that matter most.

As our lifestyle changes, our financial circumstances and insurance needs also change.

Perhaps we’ll upgrade our car or house, take out an investment loan or start a business.

If we take out insurance, the cost of repairs, medical treatments, travel changes or theft can be softened. When something goes wrong, we expect an insurer to deal with the disaster — even provide a cash settlement. Of course, such an outcome depends on the terms of the policy.

So are all insurances equal?

We’ve heard the horror tales about insurance payouts. Will providers pay out when we need it most?

The simple answer is some will and some won’t. So it is really important to pay attention to the wording about the very items you want your policy to protect.

One the smartest steps when taking out insurance is to ensure it has all the ‘risk’ features you really need. If a policy sounds too good to be true, or too easy — for example there’s no medical or questions being asked upfront — then it’s going to take a lot longer to access a payout.

Using a broker or financial adviser can guide you towards insurance that best suits your needs. Especially if you have a specific issue like ongoing medical treatment, or you participate in extreme sports, because different insurers have varied views on what they will and won’t cover.

If you have an existing medical condition, the approach is always disclose all, whilst some conditions can affect cover and or the price, many have minimal impact. Full disclosure will mean you can get cover appropriate to your needs, and maximize the chance of a payout when you need it most.

All insurers are different and some will provide cover when others will decline the same client.

To get the right policy upfront requires research, and a good broker can mitigate a lot of problems just by knowing where to start. After all, it is their job.

But will my insurance payout when I need it?

If you want to reduce risk to you or your assets, consider this insurance list:

1. Life insurance
2. Trauma
3. Income Protection
4. Total and permanent disability

There’s a lot of things to protect. So it helps if you understand how much it costs to maintain your lifestyle because if the unimaginable happened, could you cope financially? Luckily, many risks can be bundled under one premium.

Therefore, putting an insurance plan in place is an important step towards safeguarding you or your family’s livelihood. And the most that could set you back is the cost of a monthly or annual premium. If you’ve taken a policy from a major, trustworthy insurer, then wondering if my insurance will payout becomes less of an issue.

If you’re unsure about insurance or have complex requirements, you’ll benefit from speaking with an expert who understands the different products on the market.

ASIC publish a really great guide about how life insurance works too.

If you’d like to chat about finance, please contact us.

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