Direct Life insurance vs Individual Life Insurance

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There are a large amount of advertisements recommending you take out life cover out with automatic acceptance, and no medicals.  Simply sign up and be covered in under two minutes.  Sounds too easy, right?

But what issue does this pose at claim time?

When taking out individual or tailored insurance whether it be Life Cover, TPD, Income Protection or Trauma, the life insurance companies may require you have a medical exam so they know your current health position.  Essentially, they are assessing you before taking your money to pay the premiums.

If you are found to be too high risk, then they will notify you and amended terms may be offered. By applying for tailored insurance and possibly completing a medical exam, you know exactly what you are covered for before handing over the money to pay for it.

Going with Direct Life Insurance with automatic acceptance on the other hand, means the medicals are done at claim time.  With the chance of a pre-existing medical condition being discovered at that stage, it is then up to the insurance company to assess whether or not, if they had known about your condition at application, they would have covered you.

Essentially, they are taking your money before they assess your eligibility for cover.

Would you feel comfortable paying premiums for life insurance without assessing your eligibility for cover?  How annoyed would you be if a claim was denied and you had no recourse to all the funds you already paid?

To ensure you have the best possible cover to suit your individual needs, contact  any of the advisers from Wealth Planning Partners on 07 5593 6895 who will be able to assist you and put your mind at rest.

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