How to increase your chances of a full and prompt payout from your Life Insurance company

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Life Insurance Payout

Life, Trauma, Income Protection and TPD insurance are there to cover you for dire events. So when you need to make a claim, you need it approved NOW –  … Read Moreand paid as quickly as possible. Unfortunately, that’s not always what happens. ASIC recently found that some life companies were rejecting as many as 1 claim in every 3*. That’s quite an alarming statistic, but bear in mind it’s not all life companies, only some.Life Insurance PayoutASIC also found that the “claim declined” rate was around 50% higher where the claimant went direct to the insurer than if they went through an adviser. In other words, you have a much greater chance of success with an adviser.

Life Insurance PayoutWhy is that? In our experience, there are several reasons:

  • Professional advisers have the technical expertise to help you get the right cover in the first place
  • We can also guide you to a Life company that has a better claim-payment culture and track record
  • And just as important, we can help you make the claim – doing the paperwork and getting it paid promptly.

Remember, if you or your dependants are making a claim, then there’s going to be plenty of stress as it is. It’s great to have someone else take that additional burden and stress away, and also to get the result you’re after – your claim accepted and paid.

Source: * http://www.asic.gov.au/regulatory-resources/find-a-document/reports/rep-498-life-insurance-claims-an-industry-review/

The information contained within, including taxation, does not consider your personal circumstances and is of a general nature only. You should not act on it without first obtaining professional financial advice specific to your circumstances and reading any product disclosure statements.

Robert Bauman is a Director of Straight Money Talk Pty Ltd, ABN 63 082 454 730, ASIC Authorised Representative No. 40644. Straight Money Talk Pty Ltd atf SMT Trust is a Corporate Authorised Representative of Millennium3 Financial Services Pty Ltd, ABN 61 094 529 987, an Australian Financial Services Licensee number 244252.

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