Insurance claims scandal. What can we learn?

The media has recently been reporting on an insurance scandal involving CommInsure.

The particulars of the case are complex and were aired recently on Four Corners if you’d like to look up the specifics. Importantly, the case highlights the value of quality advice in relation to your insurance needs. The case in question involved what is known as a Group Insurance policy.

Effectively, it is the default cover that is provided to a member of an industry superannuation fund. For example, many of my clients come to me with various superannuation funds Sunsuper, Australian Super etc which include some level of insurance cover. More often the not, the advice I provide involves obtaining a new, fully underwritten retail policy to replace or compliment the default group cover already in place.

The reason being, there is a massive difference between advised insurance products and direct insurance products offered on a group basis through industry funds. For those of you who have been through the planning process, you’ll know that a full assessment of your financial position is undertaken prior to recommending an insurance solution.

Then, when proceeding with the recommendation a process involving medical and financial disclosure is undertaken. This ensures that the likelihood of a successful claim is far greater. If you’re paying for an insurance product, you need to be confident that the policy will pay up during your time of need. The value of individualised advice in this regard cannot be understated.

Have a read through the recently published article for further information. If you are concerned about your current insurance cover, whether it be coverage amounts, how much you’re paying or the likelihood of the policy paying out, please don’t hesitate to contact me to discuss.

Andrew O’Brien and Hindsight Group Pty Ltd t/as Hindsight Wealth Pty Ltd (ABN 88 168 442 528) are Authorised Representatives of Synchron AFS Licence No 243313.

Andrew O'Brien. FINANCIAL ADVISER. P 07 3852 3025 M 0403 156 625

E andrew@hindsightwealth.com A Suite 4 / 30 Florence Street, Newstead QLD 4006.

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