Knocked back for IPI & TDI ?

Hi guys

What would you guys do if an insurance company didnt want to insure you for income protection insurance and Total Disability Insurance.

What other options are there that you can take to make sure you will be ok if something were to happen and you got sick or injured?


Save more into your bank account and ensure you have a good liquid buffer

&

Be more conservative in your property investing. Dont go too high with your LVR's?


For instance if in 10 years time you find out you have cancer and have to miss a lot of work you would have to make sure you have enough in cash savings to cover yourself through the period you are not working wouldn't you. Also if you were to get hit by a car and cannot return to work at all because you are permanently disabled, then you would need to ensure you would have enough cash to look after yourself.

Anyone been or know someone that hasnt been allowed to have Income protection insurance. What do they do?
 
Is there a specific reason why you have been knocked back? Usually you can have a specific illness exempted if there are pre-existing issues. My partner has one of these.
 
Insurance brokers can usually find a provider who will cover and exclude any particular prexisting condition. Generally it is a matter of paying 150%-200% premiums.

If you are a member of the workforce, most super funds also have life/disability insurance which are quite non-selective (unless you are trying to cover large sums).

Some workplaces (like ours) have income protection insurance available as a very low cost option for those covered under the EBA.

Cheers,

The Y-man
 
Firstly, try a low-underwriting policy. These are the sorts sold direct over the internet - eg, Allianz Life Plan, HBF Ezicover, etc. They still ask health questions and they can knock you back, but their whole pricing model is based on minimal enquiries and acceptance of higher risk. You'll pay more than a more intrusive underwriting scheme, but not really that much more.

Secondly, look for a super fund that includes IP and TPD with the features you want. You'll get automatic acceptance when you join the fund. Just watch out for the fine print about in what circumstances your insurance can lapse.

Thirdly, if you've been denied on the basis of a factor of your own health or your family's health, offer an exclusion clause. If they say no, take them to HREOC. HREOC is very good at getting insurance companies to agree to take people who have been unreasonably denied or made to pay a loading. (For instance, people with mental illness denied life cover, even though most mental illnesses are not life threatening).

Good luck. You'll find something - we did.
 
Is there a specific reason why you have been knocked back? Usually you can have a specific illness exempted if there are pre-existing issues. My partner has one of these.

Theres a chance I will be knocked back. I have to send in a letter from my doctor to say im in very good health and everything is fine. No time off work etc etc. My health has been normal.
 
I think now that you have been denied you may have some trouble. On a lot of applications it asks if you have had an insurance applicaction denied or loading applied.

Might be best to see an insurance broker.
 
I have been down this path also.

I had open heart surgery when I was 9 and grew up without any problems what so ever. When I came home from traveling for 9 years at the age of 31, I thought I'd get a check up. All came back clear. The Dr doing the ultra sound said apart from the scar and the staples inside there was no evidence of the procedure on my heart.

Now when I applied for Income protection Insurance I was knocked back by every company in Australia. No one would insure me because I have had Heart Disease. I was lucky that my broker kept at it and spoke to a friend at a BBQ regarding my problem. We even tried to have an exclusion clause but all said no. Had to get letters and docs from the hospital where I had the operation all those years ago, not easy.

His friend was able to find a company to insure me with a type of trauma insurance that acts like IPI. This all took about 16 months to happen.

So now is the problem of getting Life insurance as you have to tell them that you have been knocked back as they always seem to find out in the end. Also the medicals that will need to be done.

Will keep looking though bit like finance lol keep going till you find someone to lend money to you.;)

Regards

Regrow
 
Kim, have you actually applied for insurance?

Firstly you say you have been knocked back, then in a later post you say there is a "chance you will be knocked back" even though you are in good health. Frankly, this doesn't make any sense.

These are very different situations.

Which one is it?
Marg
 
So now is the problem of getting Life insurance as you have to tell them that you have been knocked back as they always seem to find out in the end. Also the medicals that will need to be done.

That's where you can use the super funds automatic acceptance. Up to a certain limit though.
 
Re the super thing, if your primary concern is life cover, you can have multiple super funds to get you the cover you need. It's an expensoive way to do it because most funds have fees, but if you really want the cover you can get it.

You can't double dip on IP though. You can only claim one at a time.

To the poster who was denied cover even with exclusions because of childhood heart disease, that's the sort of case HREOC can help with. Contact them if your needs change and you have the same problems again.
 
Kim, have you actually applied for insurance?

Firstly you say you have been knocked back, then in a later post you say there is a "chance you will be knocked back" even though you are in good health. Frankly, this doesn't make any sense.

These are very different situations.

Which one is it?
Marg

I made 1 phone call to AMP. I havent actually applied no.

AMP rang back to say the underwriters thought there would be a strong chance I wouldn't be accepted.
 
Id have to second the advice to use a broker.

Dont play with this stuff yourself if you have concerns. This type of insurance makes mortgage insurers look like magic fairies

ta
rolf
 
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