Understanding how life insurance claims work and finding a policy with a seamless and straightforward process can be a real time-saver. By knowing about how this process works, you can prepare your beneficiaries for when you pass away or know the steps to take when claiming on a trauma or income protection policy.
You can find out all about the steps involved in the life insurance claims process, as well as what you may or may not be able to claim for, right here with Savvy. Read our handy guide to claiming on your policy to learn all the key details today.
The process of making a life insurance claim is straightforward. However, it can differ depending on the type of insurance you purchase and who you purchase it through.
Claiming in the event of death
In terms of what information will need to be supplied for a term life cover claim, your beneficiary will first need to provide the original policy document and schedule. On top of this and a completed claim form submitted to your insurer, they'll also likely be asked for the following:
Copies of documentation regarding the identity of the life assured and claimant must be certified, meaning they're witnessed and signed by an individual such as a Justice of the Peace, solicitor, doctor or police officer.
Claiming in the event of illness, injury or disablement
You'll need to gather up some supporting evidence which can help substantiate your claim. In addition to a copy of your policy and schedule and proof of your identity, you'll typically need to provide your insurer with the following information:
There’s no time limit as such when making a life insurance claim. However, Australian laws say you need to file a claim within six years of an incident occurring, or three years if you live in the Northern Territory. Individual insurance companies may have their own timeframes which you must follow, so it's important to check with them if you're unsure of how much time you may have to make a claim.
After you submit your life insurance claim, your provider will assess it based on your version of events and the evidence you’ve been able to provide. This assessment can take some time, with the type and complexity of your claim, along with how quickly you were able to provide information, impacting the time it may take to have your claim assessed.
During this process, your insurer may require further documentation or information from you to help them assess your situation accurately, so they'll contact you if they require you to provide more to help substantiate your life insurance claim.
Once your insurer has completed the assessment of your claim, they’ll notify you or your beneficiary of their decision to either pay your covered amount or reject it. It’s important to read over your policy’s Product Disclosure Statement (PDS) so you can get a complete picture of what’s included in your coverage and what isn’t. This will help you avoid filing a claim for something your insurance doesn’t cover.
What you can claim on life insurance depends on the type of policy you purchase. For example, a loved one can claim for your death through a term life insurance policy, but they won’t be able to claim for loss of wages due to a debilitating injury under the same policy. Becasue of this, it pays to make sure you’re across what’s included in your policy before you buy. It's also important to note that all coverage will be subject to your insurer's terms and conditions.
Life insurance companies also have a list of general exclusions which are effectively universal across most providers. However, it’s still a good idea to check what won’t be covered in your PDS, as coverage for pre-existing medical conditions can sometimes vary depending on who you buy through. Some of the common reasons why life insurance won’t pay out include:
It's always important to check with your insurer when buying your policy so you can be sure of what is and isn't covered and make any claims accordingly.
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Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
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