They say that the devil is in the detail, and when it comes to insurance, having an expert Financial Adviser to guide you through those all-important descriptions and clauses in your insurance policy document is absolutely essential. This fact was brought dramatically home when an AdviceFirst client with Accelerated Trauma cover contacted us asking for help to make a claim on his policy. A policy that he’d had in place for 16 years.

Earlier this year, the client had been diagnosed with bowel cancer. His Financial Adviser, Dave Telfer, met with him and examined the policy in detail. Dave takes over the story.

“He told me his illness was terminal, and because I could see he had life insurance, I realised that with less than 12 months to live, he may be eligible for an early payment of the life insurance benefit under the terms of his policy for the sum insured of $500,000, instead of only the linked trauma sum insured of $150,000.* ” Without an adviser to look over his policy in detail the client may not have realised that he could submit a terminal illness claim under the life cover benefit of his policy**.

Dave continues: “When someone takes out a life insurance policy many years prior to making a claim, they can lose sight of what cover they’ve got. It’s our job to help them understand the cover they have in place.”

The client had been paying premiums for years and was dedicated to the concept of insurance. He thoroughly deserved to get the money, Dave says. “Although it was bittersweet, it was cool to give him the cheque.”

“That early payment of the life insurance benefit has allowed our client to plan for his departure by providing for his family. The money has helped him renovate a house that he’s bought for his daughter and grandchild where they can live happily and comfortably.”

*Payment of a linked/accelerated trauma benefit reduces the sum insured of the life cover benefit by the amount paid for the trauma claim.
**Life Insurance policies contain different definitions of terminal illness, so you need to refer to the relevant policy document for the criteria for a terminal illness claim, or talk to your AdviceFirst adviser.

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