Have you got life insurance? This could include Life, Total and Permanent Disability (TPD), Trauma or Income Protection cover – they all fall under the umbrella of life insurance.
Chances are, you do. Either because you’ve got a financial adviser who recommended you take out some cover, or because you’ve got some cover under your superannuation, or you called up and bought it directly.
Your health is one of the few things you can’t control. You can choose who you work for, where you live, what you eat, how you dress, but not if you have health challenges. This is why these life insurances are so important, and why they are automatically given to you as part of your superannuation.
So the question is, do you know what your insurances actually cover you for?
I’ll give you an example: A client of ours, with an income protection policy, recently ruptured his ACL (a ligament in his knee) while playing sport. Truth be told, he also sprained his medial ligament, bruised the bone and fractured his femur (ouch!), all in one go. He initially missed two days of work and was on crutches until surgery. Recovery from surgery meant he missed another three weeks of work, all of which was covered by his leave entitlements. So, any claim there?
Most people assume the answer would be no, but the client has a comprehensive income protection policy with a ‘specified injury benefit’. One of the specified injuries is a fractured femur and so, regardless of the short time off work, the client was able to claim a 3-month benefit.
You’re paying for the insurances so it pays to know how to spot a potential claim, and if you’re not sure call your financial adviser. It might be the best phone call you’ve ever made.