Do life insurers really pay claims?
Increase and retainArticle5 June 2023
[HEADING]
Do life insurers really pay claims?
[SUBHEADING]
It’s natural to wonder if insurance would really help protect your family in their time of need.
[BODY COPY]
There’s a common belief that life insurance companies will do everything they can to avoid paying claims. But the statistics show something different.
A massive 98% of life insurance claims through super were paid in 2021, as were 89% of total and permanent disablement claims through super, according to Australian Prudential Regulation Authority (APRA) data.1
You can be confident that your family will not be left in the lurch so long as:
- you truthfully disclosed all relevant information when you applied for cover, and
- you’re covered for the condition the claim is for.
Will I still be covered if my health changes?
Once your cover starts, what you’re covered for under your life insurance won’t change – even if your health deteriorates.
In fact, you don’t even need to tell your insurer about changes to your health unless you intend to make a claim.
Why are some claims declined?
Here are the main reasons why life insurers decline a small percentage of claims:
- the claim is specifically excluded based on the policy (for instance, due to a pre-existing medical condition)
- the claim is fraudulent
- the disability doesn’t stop the insured person from returning to work
- the insured person hasn’t disclosed a pre-existing medical condition. In this case, the insurer will generally consider things such as what the person’s condition is and whether that condition is related to the claim.
How can I better protect my family?
As we’ve mentioned, so long as you gave full, truthful answers when you first applied for insurance and you are covered for the condition you claimed for, your family is very likely to be paid within two months of claiming.
There are a couple of things you can do to make sure the claims process is as stress-free as possible:
- keep us up to date with your current contact details
- regularly review your insurance to make sure it still meets the needs of you and your family.
[CALL OUT BOX]
If you have any questions, get in touch
If you’re not sure about what your policy covers or you are worried you may not have disclosed something that may be relevant, get in touch. We’re here to help protect your family. Call us on <<phone number>>.
[CALL OUT QUOTE]
“A massive 98% of life insurance claims through super were paid in 2021, according to APRA.”
1 APRA, Life Insurance Claims and Disputes Statistics December 2021, issued 19 April 2022, accessed 8 September 2022.
eDM, LinkedIn and Socials
eDM
| Subject line | It’s easy to say life insurers don’t pay claims – but what are the facts? |
|---|---|
| Pre-header text | Busting a common myth on life insurance claims |
| Header image copy | |
| Headline | In Australia 98% or 89% of life insurance claims are paid out – which one is it? |
| Salutation | Dear <name> |
| Introduction | There’s a common belief that life insurance companies will do everything they can to avoid paying claims. But the statistics show something different. A massive 98% of life insurance claims through super were paid in 2021, as were 89% of total and permanent disablement claims through super, according to Australian Prudential Regulation Authority (APRA) data.2 |
| Body | You can be confident that your family will not be left in the lurch so long as:
Will I still be covered if my health changes? Once your cover starts, what you’re covered for under your life insurance won’t change – even if your health deteriorates. Why are some claims declined? There are a couple of main reasons why a small percentage of claims are declined:
How can I better protect my family? As long as you give truthful answers when applying for insurance and you are covered for the condition you claim for, your family is very likely to be paid within two months of claiming. To make the claims process as stress-free as possible:
|
| CTA | To learn more, read our full article <here> |
| Sign-off | Regards, <name/team> |
| Disclaimer | 2 APRA, Life Insurance Claims and Disputes Statistics December 2021, issued 19 April 2022, accessed 8 September 2022. <<disclaimer copy>> |
LinkedIn post
| Introduction | There’s a common belief that life insurance companies will do everything they can to avoid paying claims. But the statistics show something different. |
|---|---|
| Body | A massive 98% of life insurance claims through super were paid in 2021, as were 89% of total and permanent disablement claims through super, according to Australian Prudential Regulation Authority (APRA) data.3 You can be confident that your family will not be left in the lurch so long as:
Will I still be covered if my health changes? Once your cover starts, what you’re covered for under your life insurance won’t change – even if your health deteriorates. Why are some claims declined? There are a couple of main reasons why a small percentage of claims are declined:
How can I better protect my family? As long as you give truthful answers when applying for insurance and you are covered for the condition you claim for, your family is very likely to be paid within two months of claiming. To make the claims process as stress-free as possible:
3 APRA, Life Insurance Claims and Disputes Statistics December 2021, issued 19 April 2022, accessed 8 September 2022. |
| CTA | To learn more, read our full article <here>. |
Social post
| Introduction | Many people believe life insurance companies will do everything they can to avoid paying claims. |
|---|---|
| Body | But the statistics show something quite different. In fact, 98% of life insurance claims through super were paid in 2021. |
| CTA | For more myth-busting facts you need to know, read our full article <here>. |
This information provides an overview only on specific topics and may be limited in scope or subject to qualifications and generalisations. It is provided for your use with insureds and superannuation fund members.
The information provided is also designed to be provided to insureds and superannuation fund members under your own name and any applicable licenses. You will need to consider whether the information is required to be changed or qualified in doing so. To the extent that there is inconsistency between the information on this website and the relevant policy, the policy will take precedence. You should take professional advice and review the appropriateness of the information before it is used by you.
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© Zurich Australia Limited ABN 92 000 010 195, AFSL 232510. Information within it is current as at May 2023 but may be subject to change. Updated information will be available by contacting Customer Service on 131 551.
