Securing the best insurance cover with a respected adviser
A recent Life cover application lodged for clients by UProtectNZ highlighted the value of working with an experienced and respected insurance adviser.
People may often ask: “why should I engage an insurance adviser, when I can go direct to the insurance company and get the best deal?” In some cases, such as house, contents and motor vehicle insurance, that may be a valid question.
But when it comes to securing the best terms for personal life, health, critical illness, income protection and permanent disability covers, there is no substitute for working with a quality insurance adviser.
The process of insurance of applications
When your application is lodged for personal life cover, it is medically and financially assessed according to the insurance company’s underwriting rules. An application may either (i) be assessed and accepted at standard rates, or (ii) assessed and result in an Offer of Terms which may have exclusions of pre-existing conditions and/or, a premium loading applied. Premium loadings ranging between +50% to +400% are the amount a higher-risk applicant’s premium will be increased, over and above a company’s standard premium rate. This increase reflects the higher risk that the applicant will make a claim in the future, and includes conditions like diabetes, high blood pressure, or a strong family history of certain types of cancer.
How we helped our client secure the best insurance cover
In our client’s application, she disclosed that her mother had been diagnosed with ovarian cancer at age 27. Having a first-degree blood relative diagnosed with ovarian cancer at such an early age is an immediate “red flag”, so when the Offer of Terms arrived, it had an exclusion for ovarian and breast cancer and a +50% premium loading.
We immediately challenged these terms, on the grounds that my client is now age 50 and any risk associated with ovarian cancer was now at normal levels for her age. The underwriter immediately agreed, removing both the exclusion and the premium loading.
What factors influenced this successful outcome?
- Having an insurance adviser who presents a sound case for their client and is professionally respected by the underwriters.
- Working with an insurance company that is open to negotiation when presented with evidence that the underwriting decision was unduly conservative.
In this case, we are delighted that our client now has full cover at standard rates.
The moral of this real story is:
“To find the best financial advice and insurance quote, your first step should be using a respected insurance advisor, see what our clients say.”
It’s what we do.
“Come as a client, leave as a friend.”
Theo Simeonidis
UProtectNZ Insurance Services