Agreed Value policy: the insurance company guarantees the Monthly Benefit at time of application that you cover yourself for as well as with indexation. So at anytime in the future if you ever need to claim, your monthly payment is guaranteed. This is regardless whether for example your occupation has changed or your salary has dropped.

Indemnity policy: these policies are lower in cost as regardless of what Monthly Benefit you cover yourself for at time of application, only at claim time in most cases do they ask for proof of salary for the period of time preceding claim.

If your salary has stayed at same level or increased, then no issue but if for some reason your salary has gone down such as changed airlines or changed occupations, they will only pay your claim based on the salary at that time, not when you first applied for the policy. The reduced monthly payment stays at that reduced level (with indexation) until you return to previous work or until claim runs till expiry date (either 55 or 60). So it is not guaranteed which provides extra risk to you as no certainty of future income levels but is offset by lower premium.

Ideally, with Income Insurance, your waiting period should commence at the end of any sick leave entitlements - those which are due in the next 12 months and any accumulated sick leave. The longer the waiting period, the less you will pay for your policy
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Also important to know that claims are paid in arrears, that is if it is a 30 day policy, it is paid at the end of the month so approximately 60 days. If it was 180 days, it would be 30 days after 180 days have passed.

Not necessarily with Income Insurance. It would depend on the type of competitive sport played and its risk of increasing the chances of having a claim. What normally happens is that we may withdraw cover from your policy for that particular activity, eg. motor sports, diving below depths of 30 meters or forms of aviation. As another example, if you participate in a non-contact sport like golf or cricket (not as a professional) it will not effect your application.

No. Medical insurance policies, as opposed to Income Insurance, cover you for out of pocket medical expenses incurred as a result of a medical condition. A reduction in your benefit can only occur if you are paid a benefit from any other Income Insurance policy, and sometimes Social Security or legislative type payments.

That will depend on the waiting period that you have selected and the type of benefits you have in your Income Insurance policy. For the majority of benefits, e.g. your monthly income, you will need to wait until the number of weeks of your waiting period has passed. Also, benefits are paid monthly in arrears.

With Income Insurance, you have the option of selecting two types of premiums.

Stepped premiums will increase each year on renewal and are based on your age at the time of renewal.

Level premiums remain at the same premium through the life of the policy. Even though stepped policies are less expensive to start with, a Level policy may be cheaper over the duration of your policy.

There are four options:
Post cheque or money orders directly to the insurance company. Usually only available for half-yearly or yearly payments.

Pay by credit card (VISA, Bankcard or Mastercard) over the phone by calling your life company. Payments are required monthly, quarterly, half-yearly or yearly.

Pay by direct debit authority from your bank account. Payments are required monthly, quarterly, half-yearly or yearly.

Pay by Bpay utilising phone or Internet banking. This may be arranged through your bank. Payments are usually required either half-yearly or yearly.

As a rule, the greater the chances of suffering a sickness or having an accident as a result of the duties you perform in your occupation, the more you will pay for your Income Insurance cover. For example, a plumber would carry out duties that are more exposed to the chances of having a sickness or accident than, say a clerk, who would normally be desk bound will little exposure to things that can prevent them from working as a result of a sickness or accident.

Following your meeting with one of our advisors you will receive a Statement of Advice (SOA) which will detail our recommendations to you based on the information you provided to us. Once you have read the SOA and are happy to proceed sign the document and return to our office and we will organise for an application to be sent to you for completion. We can also meet with you if you require assistance in completing the application. Once the application has been completed we will forward it to the respective Life company for assessment and underwriting.

Yes you can however the refund will be a pro-rated premium from date of cancellation date till your policy due date.

In most cases medicals or a blood test are required and will be dependant on the level of cover that you are applying for.

We can not stress the importance of full medical disclosure. Too many a time we have seen claims knocked back due to a client’s failure for not disclosing their past medical history. All Life companies now have a Duty of Disclosure clause which generally states that before you become insured have the duty to inform the life company of every matter that you could ever be reasonably expected to know, is relevant to that life companies decision whether to accept the risk of insurance.

Yes. Majority of companies have what’s called interim cover which covers you from the time they receive your application until you are fully underwritten. Interim cover generally lasts between 60 to 90 days and varies from Life company to Life company. If you do have existing cover with another provider we recommend that you hold off cancelling that cover until your new policy has been accepted and you have received written confirmation.

Yes you can and it is highly recommended. Your insurance cover needs to reflect your current lifestyle and importantly your financial situation. So if your financial situation changes such as a salary increase, you purchase a property, get married, birth of a child etc you should see your financial advisor about updating your cover.

Should you ever need to claim in the first instance please contact our team & Noall & Co and we will advise the respective company that you need to lodge a claim. Once you receive the claim forms we will guide you all the way throughout the claims process.

Not necessarily however again we can not stress enough the importance of disclosing immediate family medical history as it will have some bearing on the underwriting decision.