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Claiming Across Multiple Insurance Policies

Sureserve Financia...

Oct 08, 2017
Views: 2143

Business Insurance Life Insurance TPD Insurance Trauma Insurance General Insurance

In this Advisr Experts Opinion, Greg Dobrin, of Sureserve Financial Services, discusses the misconceptions surrounding claiming on several insurance policies and the actions you can take to claim across multiple insurance policies.

It is often the case when people have multiple policies they have concerns whether they can claim on each policy.

The general rule here is, if you are insured for it, you can make a claim in the event that the insured incident occurs.

Policy holders can have multiple policies and can claim against multiple policies for a lump sum policy:

Life
Critical illness
Trauma
Total and permanent disability

The exception to this is if one policy has been issued on the condition another policy is to be cancelled. Income protection insurance (where the benefit is paid monthly and is based on the insured's income) works differently to lump sum policies. The premise of income protection insurance is that the policy owner can only insure their income.

Income protection policies may have an offset clause. So it is good to check your policy and seek professional advice from an insurance expert.

An offset clause, can allow an insurer to reduce the benefit they would pay by the amount of benefit that will be paid from another insurer. This can create a "vicious circle"; whereby one insurer will reduce their benefit payment by the amount expecting to be paid by another insurer. Therefore, it is important to read the fine print and know what you are agreeing to when you sign the contract.

To avoid future problems like these, make sure you get yourself a top insurance broker who can help you through the ins and outs of insurance.

Get all the rewards while doing less work! Find an insurance broker, like Greg Dobrin, that you can trust via Advisr.

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General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Greg Dobrin, Sureserve Financial Services, ABN 44 001 581 871, AFSL 234665