Insurance – Do you know what cover you hold?

Insurance might be an expense you think you can put off- essentially you are paying for something you hope you never need – but we have experienced many times just how grateful people are when they receive an insurance cheque should the worst happen.

We have recently been involved with helping some of our clients with claims on life insurance policies and thought it would be great to share one of these stories with you.

Alex’s Story

Alex* is 41 but in 2007, when he was 34, a tumour in his right lung was diagnosed and two third’s of his lung had to be removed. Alex had a trauma insurance policy in place at the time, but didn’t make a claim on the policy because he wasn’t aware he could.

Jump forward to 2014 when he met with Phil, a Financial Adviser from Byfields Wealth Management, after being referred by one of our existing clients. Alex explained his situation and Phil realised that Alex could have made a claim on his insurance policy … but more importantly that it wasn’t too late and he still might be able to make a claim.

Phil contacted the insurance company and, although it took almost 8 months from start to finish, Alex has recently received an insurance cheque for approximately $320,000 as well a cheque for approximately $7,600 refunding the premiums he paid on the policy between 2007 – 2014 that he wouldn’t have paid if he had made the claim back in 2007. On top of this Alex also received $5,000 from the insurance company to pay for financial advice about how best to use the insurance proceeds. Alex had a long term goal of paying off his home loan, which will now happen much sooner as he was able to repay $320,000 towards debt.

Ultimately this is a great outcome for Alex but he might not have been this lucky – just imagine if he had cancelled this policy before coming to see Phil. It just goes to show not only the importance of having insurance cover in place but also knowing what you are covered for and when you are able to make a claim.

Knowledge is power, so if you are unsure what insurance cover you have in place and would like a Financial Adviser to review this for you, just head to our Contact page.

*Name changed for privacy reasons

Please note there are various forms of insurance which can be utilised simultaneously or individually to meet your individual needs, goals and objectives. You should speak to your Byfield’s Adviser to help assess your specific situation and to determine the type and level of cover suitable for you.

General Advice Warning: The information on this site including any information contained in any of the blog posts is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions.