Case Studies
1. Client saved over $1000pa in premium due to help from an Insurance specialist who initiated a pre assessment
During information gathering it was determined that one of the clients may have a loading applied due to a high BMI and a history of Diabetes in the family with both parents.
I called multiple insurance providers and spoke with underwriters who gave me a pre assessment of the likely outcome if the application was presented as disclosed at this early stage.
Pre assessments are done to give greater security to the application outcome and save the need to shop around if one company declines cover or adds loading due to health conditions.
One particular insurer gave a pre assessment at standard rates for the client whereas others applied a 50 – 100% loading.
After the application was submitted the company applied a 50% loading. I contested the result and recordings of my conversation with the underwriter was examined.
The company offered Standard rates to honour the pre assessment saving the client $1000 pa in premium costs.
2. No Pain legacy policy upgrade gives significant benefits
After reviewing a client’s present policy I discovered they held a policy that was nearly 10 years old. I educated the client through pointing out the parts of the PDS in both Policies that related to better definitions and they decided to upgrade the policy to the newest policy where the definitions were more generous (for example a $250,000 trauma claim would be honoured if a lumpectomy were carried out following a breast cancer diagnosis rather than a full mastectomy required under the old policy.) on the proviso that there would be no exclusions or loadings applied.
This would ensure that there was more chance of a claim in a critical illness scenario.
3. Adviser review uncovers gaping hole in super fund beneficiary nomination that could have had disastrous consequences.
A Client who had significant Life Insurance cover in his Industry Super Fund wanted to review his insurance needs.
He had a previous marriage and now a new partner along with children from both marriages.
For anyone holding their insurance within a super fund the policy is owned by the trustee of that fund. The trustee is bound by SIS legislation (governing the superannuation industry) if there is a claim for life insurance the insurance proceeds will be paid by the insurer to the super fund trustee as the policy owner, and will form part of the member’s super account in the event of the member’s death. Unless a ‘binding’ nomination exists the trustee can pay proceeds to the person’s spouse, child (of any age), financial dependent and a person in an interdependency relationship with the member at the time of death
In certain cases funds can also go to the ‘ex-spouse’ .
I was able to pick up the fact that he had no binding nomination and assist him to put this in place to give peace of mind relating to any potential claim pay out.
4. A Client learns the value of insurance the hard way!
A client came to me to reduce his cover. Since the cover was taken out he has developed Type 2 Diabetes. He is now uninsurable for most personal risk covers. He now values the insurance he does have.
5. Getting the best result after a disappointing exclusion imposed.
Poor policies always have a ‘pre-existing conditions’ clause. People pay their premiums diligently year after year and at claim time get a shock when a claim isn’t paid because of a ‘pre-existing condition’ that contributed to the claim. A good retail policy will always underwrite up front so that certainty is built into the insurance contract.
I obtained a better result for a client who had a full diabetes exclusion imposed due to a two month gestational diabetes condition with the birth of a child.
I went to multiple insurers to get a pre-assessment and found an insurer who gave a favourable offer and went back to the original insurer who reviewed the decision and relaxed the exclusion to not include ‘severe’ diabetes. This could make a $250,000 difference to this client in the event of a claim for severs diabetes.
Having a trusted, experienced and diligent Life Risk Insurance Specialist adds value.
6) Knowledge is Power
A 21 year old man was sold what he thought was an income protection /accident and sickness policy over the phone by a well know insurer telemarketing service.
After reviewing the policy I could tell straight away that he had fallen into a policy that he was very unlikely to ever claim on when compared to a Policy with better definitions.
It seemed that the client would need to be like the ‘Black Knight’ of Monty Python – no legs, no arms etc before he could claim. I was able to help him with a properly underwritten and structured income protection policy that would offer him longer term cover with policy definitions that made it much easier at claim time – all at a lesser premium.
7) Ignorance is no excuse
A friend of mine was snowboarding in France and had a terrible accident that broke his spine in three places . He had a work based insurance cover that he thought would protect him. Unfortunately it was not a good policy and it didn’t. he had to book a first class ticket to get home in the plane (due to need to lie down immobilised. He couldn’t work for 12 – 24 months and had no income and no help with medical bills.
It pays to have professional help so that you don’t have to be the expert.
General Advice Warning:
The information contained within this website 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 or you may make a decision that is not in your best interests.