Don’t risk life insurance claim being rejected in bid to save time or money

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Smallest of details can result in insurance claims being rejected: Centric Wealth

Rushing decisions can lead to rejected claims.

Rushing decisions can lead to rejected claims.

Buying life insurance online may seem an efficient way of buying life insurance, but for many policy holders it can significantly increase the risk of them not being adequately covered and having their claim rejected in the future.

According to leading wealth advisory firm, Centric Wealth, the complexity of today’s life insurance policies can result in a claim being rejected because the smallest of details was incorrect at the time the policy was purchased.

“When most people take out life insurance they do not anticipate having to use it,” said Jon Pillemer, Joint Head of Risk at Centric Wealth. “If they do end up making a claim, their success will ultimately depend on the actual product they purchased and how much attention they paid to understanding the details of their policy.

“Many people wrongly assume that purchasing life insurance is as simple as going on line, selecting the cover they want, filing in the relevant forms, and paying their premium. In reality, insurance is a lot more complex, which is why an increasing number of people end up not being covered even when they should be.”

Mr Pillemer said one of the biggest risks associated with buying life insurance online or over the phone is overlooking important details and not fully understanding exactly what is covered.

“Due to the complexity and amount of jargon found in many life insurance products, it is not always clear what cover is being offered and, more importantly, what situations are not covered by the policy,” said Mr Pillemer.

“Unfortunately we have had clients who have purchased life insurance without seeking our advice who have ended up with inadequate cover or unsuccessful claims. This has resulted in significant personal and financial stress either for our client or their families.

“The solution is to purchase life insurance through a risk adviser who is going to focus on more than just the type of your policy and the level of cover. By understanding your personal and financial circumstances, they will be able to assess how these will impact your insurance needs now and in the future.

“They will also regularly review your insurance cover and recommend any policy changes or upgrades as your personal and financial circumstances evolve.”

For Centric Wealth, non-alignment with any insurance provider is also an important factor when it comes to choosing an appropriate risk adviser.

“This non-alignment means we have the flexibility to find the best life insurance solution for our clients,” said Mr Pillemer. “We also support our clients through the entire life insurance process including any claims they or their families may have to make. This level of support includes fighting for our clients when an insurer will not pay out what we believe is a legitimate claim.

“While many life insurance claims can be relatively straight forward, our clients have the added benefit of knowing we are skilled and knowledgeable in the claims process and ready to act on their behalf”.

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