Last updated: May 06, 2024

How do I make sure my protection insurance will pay out?

Michael Harms AFPS
Director & Chartered Financial Planner at Mortgages for Doctors

How do I make sure my protection insurance will pay out?

Having protection insurance can provide assurance that we’re financially secure in the face of life’s uncertainties.

But having bought insurance, you may be wondering whether your policy will pay out when you need it.

This article will provide an overview of the steps you can take to make sure your policy covers your needs and enables a successful pay out in your time of need.

  1. Disclose accurate information

To make sure your protection insurance provides you with the best possible coverage and support, it’s essential to accurately disclose all the necessary information from the start.

Firstly, be honest and open about any medical conditions or pre-existing medical issues when you answer questions about your health. Whether it's a physical ailment or mental health issue, accurately disclosing all the necessary information will make sure your protection insurance offers the correct coverage.

Secondly, be sure to inform your insurance provider if you change any aspect of your lifestyle that may affect your coverage. This includes if you change jobs, move, marry, or buy a new home. Giving the clearest and most accurate picture of your current life will make sure you always receive the best coverage.

Finally, make sure to audit your protection insurance policy every few years to ensure that the fees, terms and conditions still reflect your current situation. This will help to ensure that your protection insurance pays out properly should you ever require it.

  1. Meet the policy's terms and conditions

The most important step to make sure your protection insurance will pay out is to meet your policy's terms and conditions.

Make sure you read the contract thoroughly, and when making a claim, ensure you meet all the conditions outlined. If you don’t, the insurer may refuse to pay it. For example, if you have a critical illness policy that requires a certain severity level of an illness before it pays out. If there’s any confusion, it is always better to ask us to make sure you don’t leave yourself open to any surprises.

On top of the legalities, it’s important to honor your obligations and commitments to your policy. This may include payments, contact details or proof of identity - it’s important to stay on top of these.

  1. Pay your premiums

Staying on top of your premium payments is the only way to make sure you're always covered.

Firstly, take the time to understand your premium and the payment terms associated with your particular policy. Knowing your insurance premiums helps to ensure you will stay on track and be prepared for payment when it is due.

If you don’t have the cash to cover the full premium at once, find out your options for setting up a plan. Most protection insurance providers offer flexible payment options, such as setting up a payment plan for you to make regular payments over time.

You could also set up email or SMS notifications to remind you when the payment is due. This will help keep you from any unexpected fee and make sure you stay up-to-date on your policy.

  1. Validate your claim

When you make a claim, the insurer will investigate the circumstances to determine whether your claim is valid. They may ask for medical reports, financial information, and other evidence. If the insurer finds any discrepancies or inconsistencies in your claim, they may refuse to pay out. Therefore, it is essential to provide accurate and complete information.

It may feel daunting to begin the process, but if you have the correct information available, it can be painless and uncomplicated. Keeping this information up-to-date and easily accessible will stand you in good stead, helping you to avoid any unnecessary delays in processing.

In conclusion, whether your protection insurance policy will pay out depends on various factors. These include disclosing accurate information when applying for the policy, meeting the policy's terms and conditions, paying your premiums, claiming within the policy's timeframe, and validating your claim. By understanding these factors and following the policy's requirements, you can increase the likelihood of your protection insurance policy paying out when you need it.

Please get in touch if you’d like to find out more.

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