Spring clean your insurance

Spring is here and it is time for spring cleaning – be it your home, your cupboards, your garden or your wardrobe. There’s one type of spring cleaning that people tend to forget and that is to spring clean your Risk Insurance Policy. There’s no better time than now to speak to your Independent Financial Advisor and make sure that your insurance policies are all in order, that you have a full understanding of what they entail and to ensure that you are neither over nor under insured.

Here are some tips to help you get on top of your insurance spring cleaning:

1. Life cover

Do you have life cover? If so it’s important to make sure that you understand how your life cover will pay out or IF your life cover will pay out, at claim stage. You will need to find out whether or not there are any general exclusions that have been applied, or loadings that can be reviewed. You need to know if you will only be underwritten at claim stage and whether any pre-existing conditions will prevent your claim from being paid.

2. Disability cover

As part of your insurance spring clean you will need to look at your disability cover. Find out if your disability cover is higher than your life cover and, if this is not the case, you will need to look at speaking to your financial advisor and updating your disability cover policy as you would run the risk of not being able to cover your everyday expenses. This is because both you and your family will need to be protected financially should you find yourself suffering from an injury or illness which is permanent, and which would result in you being unable to earn an income. You should also take into account the higher medical costs which come as a result of your disability, which your disability cover will need to cover. It is important to familiarise yourself with any potential Barriers to Claim your insurer may apply to your disability cover, such as whether you have to be totally impaired to claim, have to prove the inability to perform your occupation, prove loss of income and fail the activities of daily living or have general exclusions applied (i.e. under the influence of alcohol or other substances)

3. Dread Disease cover

Another crucial aspect of your insurance that you will need to look at is your dread disease cover. This covers any additional expenses you may have related to any serious illness you are diagnosed with, including dread diseases such as cancer, heart attacks, strokes, Parkinson’s, etc. During your insurance spring clean you will need to check whether or not you have dread disease cover and if you do, you will need to find out from your financial advisor what type of dread disease cover you have, if you are in fact covered for all the dread diseases and whether there are any exclusions or Barriers in the Claim. This will ensure that you avoid any unpleasant surprises should you find yourself suffering from a serious illness.

4. Income Protection

Another important aspect of your insurance policy which you should look at getting if you do not already have, is income protection. Income protection protects your most valuable asset: your monthly income. This protects you financially should you find yourself unable to work for whatever reason. For your insurance spring clean you need to find out if you are over insured or under insured, what waiting period you face and what exclusions or triggers there are for the claim, such as having to prove loss of income as a business owner. It is also important to note that income protection is regulated and that it cannot be duplicated on group benefits or personal policies.

5. Business assurance

For your insurance spring clean you should look at what whether your business assurance is correctly

structured for your business’s needs. You should look at what you are paying for your business assurance policy, as traditional business assurance is costed for the maximum term (110 years), while the average business assurance need is 15-20 years. It is also important to find out whether your personal business assurance is correctly structured, as not having the correct structure could result in tax or estate duty implications.

6. Check the fine print

The most important aspect of your insurance spring clean is to check the fine print of your insurance policy. This will ensure that you or your family do not find yourselves blindsided in the event of a claim. Speak to your financial advisor to establish the following about your insurance policies:

● What is the survival period applicable if you claim (0, 14 days, 30 days, 3 months?).

Insurance companies use this as a barrier to claim, so that they do not have to pay out

on all benefits.

  • Are you reassessed in claim.

  • Find out if you are paying for a loading on your policy which can be reduced.

  • Establish if you have exclusions on your policy which can be reviewed.

  • Do you have accidental cover only or full life, dread and disability cover?

  • ​Do you have the correct cover in place of your specific needs?

​With these essential insurance spring cleaning tips, you will ensure that you have the best possible cover for you and your family, that you have a greater understanding of what your policies entail and that all of your insurance policies are up to date.When you need to request a Pre- Authorisation Number for any in-hospital procedure; please have the following information:Find out more by clicking on the link below.


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