4 tips to set your life insurance policy up for success

Life insurance is designed to provide valuable peace of mind in case of the unexpected, but some may have some concerns that their claim won’t pay out when they need it most.

However in reality, according to moneysmart.gov.au, 97.4% of life insurance claims purchased through a financial adviser are accepted. How seamless the claims process is can depend on the decisions you make when your policy is set up. There are many things to consider when you take out a life insurance policy. These tips will help you set up your policy so that if you need to make a claim, you can do so with confidence.

1. Choose an appropriate level of cover

The starting point is to look at your expenses and debts to see how much cover you or your family would need if something were to happen to you. Ensure you choose a benefit amount and life insurance products that suit your needs and financial situation. You don’t want to be underinsured or overinsured, as this could lead to problems with affordability or adequacy of the payout.

2. Understand your policy

It’s important to have a candid and detailed conversation with your adviser when you take out a life insurance policy. I can help you understand the details of the policy, any exclusions, explain what the claims process looks like and ensure you feel comfortable with your level of coverage and inclusions.

3. Disclose accurate and complete information

When applying for life insurance, honesty is the best policy. Being transparent and providing accurate information about your health, lifestyle and medical history during the application process will help you avoid any roadblocks down the line. Failing to disclose relevant details could result in your policy being cancelled from inception and a claim not being paid later on.

4. Keep detailed records and documentation

In the event of your passing, your loved ones will need to file a life insurance claim to receive the benefits you’ve provided for them. To streamline the claims process and avoid delays, keep copies of your policy documents, premium payment receipts, and any correspondence with your insurer in a safe and easily accessible place. Don’t forget to let your beneficiaries know where these are located.

I can help you tailor your cover to your needs and make sure you understand exactly what you’re insured for, so you can feel confident you and your loved ones are financially protected.

Reference: Life Insurance Claims Comparison Tool

Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it, you should consider its appropriateness for you, having regard to those factors. Before making any decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement.