It can surprise many how willing good insurance companies are to pay income and health insurance claims and their promptness is all for good reason: because, for them (and for you), a doctor at the top of the cliff is better than an ambulance at the bottom.
More claims would be paid and more people helped if insurers knew more about what was up with their clients’ health. For example, it’s estimated about 30 per cent of all income protection claims are related to mental health issues (and this statistic is slightly higher amongst the self-employed). So, what the insurers want to do in mental health claims is to intervene quickly, and, if possible, put support structures in place before things get really out of control.
This early intervention strategy is actually good business for the insurer. The sooner you get help in a claim situation, the better, because the claim might be much smaller if the issue is dealt with promptly rather than left to snowball. In this way, insurance companies spend money in the short term to save more money in the long run.
So, this is where your doctor comes in. If you are unwell, without wanting to sound tactless, please tell us what your doctor has told you. This will allow us to see if we can get some more support from your insurer and assist in the road to recovery.
It’s a win-win: You get help faster and stay healthy; the insurance company saves money.
Graham Goodisson is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.