Insurance - it's all in the fine print

Let me just start by saying - Insurance companies do pay out - they really do.

Unfortunately in the rush to make it easier for everyone to get insurance cover, not all the relevant information is always being covered at the time the policy is applied for, and often is not being assessed properly to start with.

Whilst this appears to make getting insurance in place easier, it can lead to some extremely stressful experiences at the worst possible time - when you're trying to make a claim.

To ensure you are in the best possible position at claim time make sure that:

• you read the product disclosure document carefully

• take particular note of the paragraphs that say something like

 " when we assess a claim we will also rely on any information you have disclosed to us as part of your application. Where we have not verified information at the time of application we reserve the right to verify it at the time of the claim."         and

"You have a duty to disclose to the insurer every matter that you know, or could be reasonably expected to know, is relevant to the insurer's decision whether to accept the risk of the insurance, and if so, on what terms"

• Don't assume that if you've completed an application and they haven't asked exactly the right question that will draw an answer from you about an issue you know about that it will be alright - it won't.

Insurance is invaluable - especially when the unexpected occurs and times get tough. Make sure it counts.

Kerrianne Hebinger

Financial Planning Essentials

e: fpe@finplans.com.au

w: www.finplans.com.au