Are the banks’ insurance policies inferior?

Last month a Kiwi couple in Australia made headlines after suing ANZ for racial discrimination. Their life insurance fine print meant the policy would never pay out – because they were Kiwis. It begs the question, are you getting a quality policy through the bank?

It can be very easy to overlook the fine print, especially when you’re getting a bank-issued insurance policy that goes hand in hand with something as document-heavy as a mortgage or loan. Who has the time?

In our experience as Insurance Advisers we see a lot of insurance policies and we read a lot of policy wordings. You can trust us when we say all policies are not created equal. 

Now, while we don’t wish to tar all bank policies with one brush, we do notice that it is often these policies that offer fewer benefits or have stricter exclusions than their non-bank counterparts – for the same or similar money.

If you have purchased a life insurance policy of any type, we recommend taking a close look at the fine print.

Ask yourself:

  • What is excluded from this policy?
  • Am I comfortable it will pay out in my time of need?
  • Is it structured correctly? (i.e. is it structured to best manage my risk?)
  • Is ownership in the right person’s name to ensure it is paid out correctly?
  • Will I get a regular review of my insurance to ensure it adjusts with my changing needs (or am I going to have to remember to do this myself)?

If you end up at the conclusion that your policy might not be working for you, that’s ok – at least you realised now! But before you go and cancel anything, make sure you will be able to get better cover elsewhere first. You don’t want to potentially lose cover for pre-existing conditions, or a health concern that’s cropped up since you took out the policy, for example. You might still be able to get cover for it elsewhere, but it pays to check first.

An Insurance Adviser can take the hassle out of it – at no cost to you.

An experienced Insurance Adviser will be able to review your current policies and offer advice – whether it means sticking with what you’ve got, or switching to something that works to your greater advantage. 

If you choose to take out any policies with them, you will hear from them each year to ensure your insurance changes as your needs do.

Want a no-obligation insurance review?

Simply contact us and we’ll put you in touch with a professional Insurance Adviser who can evaluate your current situation and offer non-aligned advice. Your best interests will always be put first, and it can be worth it to know you and your family are protected.

Photo by Natalya Zaritskaya on Unsplash

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