Topic: Life Insurance

When Kate suffers a back injury, she is surprised to find her income protection insurance doesn’t kick in for 13 weeks since the accident. To make matters worse, her insurance claim is then declined for non-disclosure of medical conditions. Was any of this her adviser’s fault?

Neville increases his trauma cover from $75,000 to $100,000. However, when he makes a claim, he’s shocked to only receive $20,000.

Rawiri and Jenny’s financial adviser recommended they get life and trauma insurance cover when they refinanced. A couple of years later, Rawiri asked the adviser to cancel the insurance, but the adviser said it was compulsory for them to keep it as part of their refinance.

Sobitha’s financial adviser was unable to show that he acted in Sobitha’s best interests when recommending an insurance change that left Sobitha with less cover than she believed was in place

In January 2014 Elizabeth moves her life, trauma, and income protection policies to another insurer, on her adviser’s recommendation. The new insurer then cancels Elizabeth’s policies for non-disclosure.

Farooq reduced his wife’s life insurance cover by $100,000, based on an inaccurate premium estimate provided by his insurance adviser. As a result, Farooq received $100,000 less when his wife was diagnosed with a terminal illness. Had the adviser caused Farooq to suffer a $100,000 loss?

What happens if your financial adviser recommends a change to your insurance without explaining the extent of the policy or the risks associated with the change?

Nikki and Mark thought they did not have trauma cover and followed their adviser’s advice to replace their existing cover with a new policy including trauma cover. After discovering their original policy did provide trauma cover, they complain about the advice they received.

Shane sees an insurance adviser to review his insurance policies. Shane and the adviser do not disclose Shane’s high cholesterol and high blood sugar on an application for replacement cover with a new insurance company. The new insurer then loads Shane’s premium and Shane complains his adviser wrongfully advised him not to disclose his pre-existing medical conditions on the application form.

Adviser incorrectly advised customer insurer would refund premium loadings influencing customer’s decision to keep policy causing customer direct loss and financial hardship.