Online Life Insurance lacks the valuable advice process a registered financial adviser will provide in-person and will help avoid problems such as non-disclosure (not telling the insurer everything).
An adviser will also help you work out the right type of cover, the right amount of cover and set up the correct premium structure to make the longer-term cover affordable. Not to mention the ongoing service and support you will get from having your an adviser.
There are many reasons to avoid online life insurance, and this article is only going to cover a few of them.
One reason why insurers decline claims is non-disclosure, and when you complete an online life insurance application, there is a very high chance of this happening. The reason being, there is no one asking you questions and listening to your answers and probing a little further for more information.
You could say a good adviser has a sixth sense. After hearing an answer to a medical question, they may dig more in-depth about the medical condition because nothing can beat experience and personal service and understanding of some medical conditions and how insurers look at them.
This could make the difference whether you get your claim paid or not.
It would be all too easy to get asked a medical question, and you may think it was not that serious, or not relevant, and answer no, and that would be a big mistake!
What if the insurer does not want to cover my medical condition?
If you apply for online life insurance, you may get your new policy. You may even think that your existing medical condition is covered. Still, if you did not tell the insurer about any previous medical condition, or you did not tell them the whole story, then at claim time, they are going to get all the information.
It’s important to understand that insurers do not get full medical records when you apply for insurance. If they ask your doctor for more information, they can only ask about any medical conditions you have told them about, so they will be unaware of any other conditions unless you tell them.
Using an adviser and going through all your medical information thoroughly is in your best interest. You need to disclose all medical information upfront, and if you have to have some medical tests done, so be it (which may be a good thing for you).
The insurer may then exclude your current medical condition or maybe even charge an additional premium to cover your existing condition. Still, at least you know where you stand, with no surprises at claim time.
Have your purchased the correct product?
Another reason why you may not get paid when you think you should is that you may have purchased the wrong insurance product or misunderstood the fine print. You may have wanted to buy Income Protection Cover, and ended up buying Medical Insurance.
One will pay for lost income, and the other will pay for medical costs, and if you do not clearly understand the difference between the two, the lines can become blurred on which one meets your needs.
Or for example, you could buy Trauma Cover which will pay a lump sum if you get diagnosed with a serious medical condition, but what you wanted was Medical Cover to pay for private medical treatment if you did get diagnosed with a severe medical condition.
Life Insurance Quotes
It’s tempting to get online quotes and start the online life insurance application process, but as always, please contact us for professional advice, service and the right insurance cover.