The coverage of a policy is not only determined by the wording of the policy, but also by any limitations placed on it by the insurance company.
In the case of the builder who has had recurring lower back issues for the last five years, it’s unlikely any insurer would cover this area (lumbosacral spine) under any form of Income Protection – in short – this means the insurer would not pay a claim if the builder were unable to work due to his lower back issues.
One of our advisers had a recent case where the insurer was going to apply a 100% loading to a client’s Life and Trauma Insurance premium due to a series of high cholesterol tests. This meant that their monthly premiums would increase from $164.00 to a whopping $328.00.
Rather than accepting the premium loading, we contacted other companies to see if we could secure better terms for the client. One particular insurer’s Chief Medical Officer preferred calcium scoring over the standard method of testing cholesterol levels. The client had already undergone calcium scoring as well as an echocardiogram, so we emailed through the all of the info as well a copy of the application form. They quickly confirmed they were happy with the results, and based on the information provided, no loading would apply.
Points to consider:
For example, if you’ve had right shoulder issues, and the insurer is looking to exclude the entire right arm from your policy, ask them to be more specific with the exclusion. If they’re not willing to budge, ask for an explanation as to why the exclusion is so broad.
The opinions conveyed in this article are for general educational purposes only to provide information about the financial services industry.
This information is not intended to provide specific advice or recommendations for any particular insurance, home loan, or investment product. You should not use this article to make any financial decisions, as we cannot assess your situation without thorough consultation. We highly recommend seeking professional advice from one of our qualified financial advisers. Get in touch on 0800 346 765 or email finsol@finsol.co.nz.