Your personal insurance may not pay out: Find out why

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Have you got life insurance? How about income or mortgage protection insurance? If you bought these from a big bank, there’s a good chance that your policy is a standard, off-the-shelf product that is not medically underwritten when you buy it. 

This may mean that you’re not covered for several conditions, injuries and illnesses. Take the time to check your cover now so that your insurer doesn’t deny your claim when you really need it.

The importance of medical underwriting

If your insurance is medically underwritten, it means that your insurer has accessed all relevant medical risk factors and guaranteed a certain level of cover. If this is not done correctly at the time you purchase your insurance, your whole policy could be nullified when the unexpected happens. 

Unfortunately, this is the basis of countless complaints about insurance products here in NZ. 

Full medical disclosure

All personal insurance should be medically underwritten at the time of purchase. That means you’ll have to fully disclose all relevant medical risk factors such as:

  • A family history of illness. 
  • Pre-existing conditions. 
  • Any recent medical issues or pending medical investigations.

Here at Money Empire, before we recommend any insurance product, we run through all of these factors with our clients.

Underwriting the right way

To gather all the information we need, our advisors ask a series of questions before all medical details are double-checked internally. We then relay the information to the insurer. If you can’t provide us with the specifics, the insurer may then contact your GP to confirm details or ask questions. 

After this, we’ll come back to you and let you know exactly what you are and aren’t covered for. Plus, if we believe it’s unfair that the insurer has denied any cover, we’ll raise the issue with them to make sure you’re getting the right covers. We then review your cover every year to make sure it’s always suitable. 

By obtaining insurance through an independent advisor, you gain peace of mind, knowing that there won’t be any nasty surprises at claim time. You’ll be aware of exactly what you are and aren’t covered for so that you can plan accordingly. 

Does your personal insurance need a checkup? Give Money Empire a call today and speak to one of our insurance experts. 


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