How can you increase your insurance cover if you are uninsurable?
On the face of it, you may think this insurance for uninsurable question is a riddle? But no, it’s not. How can that be, you ask?
If you have experienced a serious illness, such as cancer, and despite successfully completing medical treatment, you will be uninsurable regarding any new insurance application that requires medical underwriting. However, in certain circumstances you can still increase your existing lump-sum Life cover without the need for medical underwriting:
- By exercising your policy’s Special Events Increase Benefit: this permits your Life cover to be increased (within certain limits) when triggered by a special life event, such as marriage or civil union, birth or adoption of a child, taking out or increasing a mortgage, purchasing a residential property and others;
- By exercising your policy’s Future Insurability Option, which enables you to periodically increase your lump-sum Life cover within certain limits. This is an optional benefit that I always recommend for my clients, and it has been an absolute blessing for those who have experienced a serious illness which would otherwise render them uninsurable.
In other circumstances, where one has had a standalone Trauma (critical illness) claim pay-out, you are able to restore 100% of the amount of the Trauma cover after 12 months from the date of the claim pay-out, by exercising the Trauma buy-back option. This enables you to reinstate the Trauma cover, based on the terms and conditions of the original cover, without needing to provide evidence of health. You will not be covered for the same condition that you claimed for, but you may qualify for a discount on your premium.
These benefits are great sources of protection to anyone who has experienced a serious illness. To maximise the value of these options, it is important to work closely with an experienced Hibiscus Coast insurance adviser.
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