It’s something you don’t really consider as a possibility when securing insurance coverage: that your claim could actually be denied. Even though it does happen, there are usually explanations given for why and, of course, there are things you can do to ensure any claim you do submit to your insurance company is paid without issue.
This does not constitute advice and advice should be sought in all instances before acting on it.
Income protection (IP)
When you initially select the coverage in your IP plan, keep in mind that you’ll need to review your policy regularly. Your needs change over time and often, you’ll forget exactly what’s in your policy when it comes time to submit a claim.
Your income protection needs to be updated when there are major changes in your life, especially anything work-related because if your benefits change, then your policy (along with your deferred period) needs to change as Income Protection is tied to your salary.
A few additional considerations:
- Sick pay structure – Confirming your sick pay structure when you begin a new job is also important, especially for NHS employees, as it changes each time you change job.
- Own occupation cover – It’s worth getting a policy that offers “own occupation’ (being able to return to your specific job as opposed to judging whether you can return to any job) if your current plan goes by “any occupation.”
If you work with a financial adviser that specialises in the healthcare industry, they’ll be aware of all the intricacies involved and will be able to find policies that adapt to the sick pay structure and deferred periods for NHS medical professionals.
In the past few years, critical illness policies have expanded their offerings to include more conditions. Even though the most commonly claimed conditions are still cancer, heart attacks, and strokes, more specific illnesses are being claimed for as well.
Insurance coverage has come a long way, but there are still illnesses that aren’t covered by CI definitions. Thoroughly review everything covered in your policy to make sure you have the level of protection you need.
Misrepresentation and policy exclusions are the two main reasons life cover claims aren’t paid.
Misrepresentation is when you intentionally leave out an existing condition you have when trying to secure insurance coverage. Insurers aren’t worried about silly errors like a difference in height or weight, or even minor conditions like asthma or IBS. The condition needs to be pretty serious, usually, one that would deny them coverage had it initially been disclosed.
Believe it or not, suicide is actually the most commonly claimed exclusion. Specific terms will vary by provider, but nearly every insurer will have an exclusion for suicide. You should always prioritise your mental health, especially during difficult times like we’re in right now. Don’t let this exclusion be the reason for a denied claim.
To avoid your claim being denied, be truthful in your insurance application and ensure the reason you want to take out coverage is to safeguard a distant — and unexpected — future death.
We can help you navigate the minefield of protection policies
The best chance for a successful claim is to work with your trusted financial adviser to ensure the information in your application is accurate and complete and that all of your needs are met.
We’re here to help you whenever you’re ready — get in touch today.
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