Do you really have peace of mind that your life insurance policy will pay out? If you didn’t undergo a full medical check when you purchased, it could mean your claim stands a higher chance of being rejected*.
Fortunately, it’s easy to check and get a more secure policy.
Cover without medical underwriting is often a one-size-fits-all policy and that can lead to problems when you or your loved ones come to claim.
Are you saying my life insurance claim could be rejected?
Quite possibly. Retail life insurance claims – that require full medical checks when you apply – pay out at a comforting rate of 96.3%*.
These are the policies Life Insurance Comparison compares.
Direct life insurance claims – policies that are purchased direct from the insurer and don’t require full medical checks when applying – are only accepted at a rate of 88.9%*.
So if you purchased your life policy through an insurer who didn’t undertake a full set of medical checks, like blood tests, then your loved ones could face a lot of stress when it comes to claiming.
Why? There’s one simple reason. The higher rejection rate for direct claims tends to be due to undisclosed and unassessed pre-existing conditions.
Most direct insurers only do medical checks at the time of a claim. This means they’re less likely to be aware of any pre-existing conditions.
Contrast this with retail insurers. They’re already aware of your medical history and any conditions you currently have.
That means they’ve given you a price that reflects your ‘risk’ to them, so there’s no hidden surprises if you or your beneficiaries make a claim.
What? Isn’t that unfair?
Well, yes, especially if you’ve purchased your life cover in good faith. But your direct policy may come with all kinds of exclusions and clauses.
Don’t believe us? Government watchdog ASIC told a recent enquiry into the life insurance industry that, in general, direct insurers tended to exclude all pre-existing conditions – and how these insurers defined pre-existing conditions varied a lot.
Confused? We don’t blame you. It’s why Life Insurance Comparison can give you peace of mind that you’re REALLY covered.
We only work with retail life insurance companies, which means all our insurers’ policies come with full medical checks. So make sure your life insurance actually does what you expect it to do and compare with us today.
Choose your area.
Which area are you in?
LifeInsuranceComparison
.com.au's online quote comparison tool makes it easy to get quotes from 9 Australia's biggest life insurers
*Figures taken from MoneySmart ‘s Life Insurance Claims Comparison Tool, current as of 7 April 2021.
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.