How to ensure your risk cover gets paid out

Life is full of unpredictable moments. Although we can’t prevent many of them, we can at least plan for them.

“Buying risk cover is a great step towards making sure that your dreams and your family’s dreams are financially protected against any unforeseen events,” says Jaco Gouws, Protection Product Head at Old Mutual Personal Finance. “However, real peace of mind comes with knowing that your insurer will keep its promise when it’s time to pay your claim.”

According to Gouws, good insurers always look for reasons to pay claims, because they understand that it makes a great difference in their customers’ lives. “Old Mutual paid out an overall of R9.28 billion in underwritten, non-underwritten and corporate claims in South Africa in 2016.”

Gouws sets out some practical tips to ensure a positive outcome for your claim:

· Know what you’re covered for. It’s important to know what you can and cannot claim for under the type of cover you’ve bought. This information is normally stated in your contract. Submitting the right claim under the right type of cover will positively influence the outcome of your claim. For example, don’t submit a claim for a broken wrist under your severe illness cover.

· Double-check your application documents and contract. Ensure that all the information you provided is recorded correctly and that you understand the contents of your contract. If there is anything that is unclear, make sure to ask your financial adviser for clarity, or phone your insurer.

· Notify your insurer of any changes to your health. If there are any changes to your health status while you’re waiting for your application to get approved, inform your adviser or your insurer. These changes will need to be reflected on your policy and will help ensure that your claim is honoured according to its terms and conditions.

· Never withhold information from your insurer. Make sure you answer all questions about your lifestyle, your health and your family’s medical history honestly. This information helps your insurer assess the amount of risk they can take on, and decide on the amount of cover they can offer you at an appropriate premium. Failure to disclose this information could lead to your claim being declined at a later stage.

According to the 2016 Old Mutual claims statistics, 4% of claims were not paid due to various reasons such as the benefit definition not being met, non-disclosure, general exclusions, suicide exclusions which apply in the first 2 years of the policy, underwriting exclusion and fraud.

Gouws advises: “Honesty and asking for help from your financial adviser to understand your contract are the cornerstones of a successful claim. Speak to your financial adviser today to make sure that you’ll be covered should the unforeseen happen.”



Latest


29 Oct 2020
Ten vital life insurance insights for the new normal

The COVID-19 pandemic has upended life as we knew it, says Discovery Life Deputy CEO Gareth Friedlander. “As our knowledge…

Ten vital life insurance insights for the new normal

The COVID-19 pandemic has upended life as we knew it, says Discovery Life Deputy CEO Gareth Friedlander. “As our knowledge of the disease caused by the Severe Acute Respiratory Coronavirus 2 (SARS-CoV-2) rapidly evolves, so too does our understanding of the unique risks it presents to your clients,” he adds.…

29 Oct 2020
Looming US elections has SA investors looking for guarantees in their investments

By: Fareeya Adam, Head of Retail Product Solutions at Momentum Investments Achieving high-risk returns and retaining the certainty of guarantees…

Looming US elections has SA investors looking for guarantees in their investments

By: Fareeya Adam, Head of Retail Product Solutions at Momentum Investments Achieving high-risk returns and retaining the certainty of guarantees is possible Will Trump serve a second term or is this Biden’s race to win? Predicting election results and the market’s reaction to it is a futile exercise, but our…

28 Oct 2020
Are you ready for the next normal?

By: Craig Kent, Head of Risk Management at Aon South Africa, and Junita van der Colff, MD of Protean Business…

Are you ready for the next normal?

By: Craig Kent, Head of Risk Management at Aon South Africa, and Junita van der Colff, MD of Protean Business Solutions In a recent webinar, Craig Kent, Head of Risk Management at Aon and Junita van der Colff, MD of Protea Business Solutions unpacked and distilled some of the key…

27 Oct 2020
Private equity vs venture capital: How to decide on the right investment for you

South African investors haven’t had the best time with traditional investment classes over the past few years. The JSE has…

Private equity vs venture capital: How to decide on the right investment for you

South African investors haven’t had the best time with traditional investment classes over the past few years. The JSE has underperformed since at least 2015 and, outside of certain pockets in the Western Cape, property prices have fallen when adjusted for inflation. As a result, alternative asset classes have come…


Top stories


10 Apr 2020
When the going gets tough, farmers are on familiar territory

South African farmers are old hands at adapting to uncertain and daunting circumstances, and our local agricultural industry has proved…

When the going gets tough, farmers are on familiar territory

South African farmers are old hands at adapting to uncertain and daunting circumstances, and our local agricultural industry has proved to be most enterprising in acclimatising to challenges as they arise.

10 Sep 2020
How too much choice is draining your brain

By: Paul Nixon, head of technical marketing and behavioural finance at Momentum Investments From the words of Francis Scott Key…

How too much choice is draining your brain

By: Paul Nixon, head of technical marketing and behavioural finance at Momentum Investments From the words of Francis Scott Key that dubbed America “The land of the free”, which stuck, to the unforgettable Mel Gibson monologue where an army of painted Scots were willing to trade their lives for the…

13 Apr 2020
Investors should keep a reasonable investment allocation outside of SA

MoneyMarketing asked Roland Gräbe, the head of Tailored Fund Portfolios at Old Mutual Wealth, about offshore investments in the COVID-19…

Investors should keep a reasonable investment allocation outside of SA

MoneyMarketing asked Roland Gräbe, the head of Tailored Fund Portfolios at Old Mutual Wealth, about offshore investments in the COVID-19 environment and what form a global market recovery will take.

13 Apr 2020
SA’s Proposed Covid-19 Disaster Management Tax Relief

The National Treasury recently issued the draft Disaster Management Tax Relief Bill (Bill) for public comment by 15 April. The…

SA’s Proposed Covid-19 Disaster Management Tax Relief

The National Treasury recently issued the draft Disaster Management Tax Relief Bill (Bill) for public comment by 15 April. The draft Bill, together with its explanatory memorandum, provides clarity with regards the tax relief measures President Cyril Ramaphosa announced on 23 March.


Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za