Have You Had Trouble Getting Insurance?

Have you ever applied for insurance and been offered terms that are far more expensive than what you thought they would be?

This is typically to a previous health condition and an offer front the insurance company's known as a loading. 

So, this week my friends was approached by a client who had insurance previously. The prices had gone up significantly, but since they applied for their cover in the first place, they were actually diagnosed with Type 1 Diabetes. Now whilst this might not be particularly applicable to you in that exact scenario, this is relevant if your health has changed over time and the insurance companies are now offering you something to what they did before. 

So what I'm going to tell you today is what you can do if you've had health issues in the past and you're getting offers from the insurance company that you're not quite happy with. So here's a little trick that we use when we can't get cover through the normal channels that we use. 

Now, I'm gonna preface this being, this is general in nature, and please don't rush out and do this without looking into it further.  But what I'd suggest you do is have a look at Australian Super. Now, I'm gonna walk you through that website in a second, but Australian Super offers what they call an automatic acceptance amount of insurance.

So what they'll do, is they'll give you up to $600,000 worth of life insurance without any medical applications. Now if you think about that for a second, if you have had medical issues in the past, this could be a massive benefit and a way of getting some cover that you wouldn't have otherwise been able to get or wouldn't have been able to get at a price that you're happy to pay, so certainly something to consider. 

Okay, so if you are looking for life insurance and you've struggled getting it in the past, if you're looking at Australian Super and you're not already a member, by joining you have the ability to add up to $600,000 worth of life insurance without any medical questions. So what that means is that any of those preexisting conditions that you have that were precluding you from getting cover that you wanted with other providers, you don't need to worry about and you'll get that insurance cover amount. 

Now, there isn't a way of getting this cover without a slight catch, and the catch is that for the first two years you're gonna have what's called limited cover. Now, what this limited cover will do is it will mean that for the first two years you're only covered for thing that weren't pre-existing conditions, so you've got a policy that you potentially can't claim on if the claim that you have is directly related to something that you had previously, so that preexisting condition.

Now, what I mean by that is that in the first two years anything that would've precluded you from getting a standard policy with this insurance company would mean that you wouldn't get a claim and you might be thinking that this would be completely against the reason for having insurance, but what it would work, after two years that limited cover expires and from two years onwards, you'll have a fully fledged policy without any loadings or exclusions, even if your health would've precluded you from getting that cover. 

Now, we laughed about this during the week with a client that came to me and I said that unless he had plans to die in the next two years, this was a really good option for him to consider. As you can see, insurance is a lot more complex than just doing some quotes online, grabbing some cover, and then you're done. 

So if you do have an experience in the past of having a decision from the insurance companies  that have not gone to plan, let me know in the comments below and I'll come back to you with a couple of solutions and maybe I can even make a video that would help you out. Get some insight from people that have done this regularly, and see if there's anything that can benefit for you.