It started life misnamed as insurance which created widespread misunderstanding. Gavin Lai explains why it’s important to understand that DisabilityCare complements rather than replaces traditional life insurance in providing dignity, protection and peace of mind.
The failure of advice providers to consider the insurance needs of investors is leading to poor outcomes in the self-managed superannuation sector, according to the Australian Securities and Investments Commission (ASIC).
The Financial Services Council (FSC) has warned the Federal Government that its National Disability Insurance and National Injury Insurance Scheme initiatives are not enough to provide sufficient coverage for Australians who sustain serious disabilities and injuries.
Hundreds of thousands of self-managed super fund (SMSF) trustees are risking their retirement by failing to seek professional advice about their insurance requirements, according to one industry expert.
The Risk Store recently released its 2012 industry statistics for retail life insurance claims announcing that the retail Life Insurance industry paid out over $4.4 billion in claims in 2012, an increase of approximately 10% on the previous year. This amount was paid from a total of over 70,000 claims. These figures do not take into account additional amounts paid out from superannuation funds which would make the total amount paid out to Australians, much higher.
One in three Australians admit to living pay cheque to pay cheque, while one in five say they would be unable to cope with an emergency expense of less than $1,000, according to new research from BT.
In April 2008 we put in place an Income Protection Contract for one of our clients in Sydney.
In early May we put the insurer on risk of a pending claim for one of our clients who collapsed whilst on holidays in Melbourne. The episode was the result of a siezure but there was no prior history of seizures. MRI scans showed a right parieto-occipital meningioma (benign brain tumour). Our client was operated on in May and the tumour removed and she recovered well. A Trauma claim was lodged prior to the operation and the insurer as part of the claim process set about obtaining medical reports from the neurosurgeon and then went back to the specialist seeking further clarification as to whether or not the claim met the definitions in the contract. This was important as they needed be be sure the diagnosis met the definition of Benign Brain Tumour in order to pay the Trauma claim. On 30 July they declined the claim based on the medical reports. After meetings with the client to seek their approval we wrote to the insurer on August 6 advising that we disagreed totally with their decision. We referred them to the upgrade provisions and the definitions contained within the contract and to the determination by the neurosurgeon. On August 8 the insurer wrote to our client, referring to our letter and agreed to pay the claim. Undoubtedly, this was an excellent result for our client and confirms our belief that our most important role is to be there when our clients need us the most, at claim time. So far we have had over $40M paid in claims to our clients.
New figures show the number of Australians diagnosed with cancer each year is expected to reach 150,000 by 2020.