So you’ve got insurance cover in place – but do you fully understand it?

Here’s what you need to know about your insurance cover, and getting the most out of it.

Why does it matter?

While having insurance can offer invaluable peace-of-mind, really getting the full benefit can depend on having a good understanding of the cover you have in place.

That might include the type of policies you have, the circumstances and events that they would be expected to respond to, how they work together and anything that is not currently covered.

Knowing these sorts of things can mean that you don’t miss an opportunity to claim, or don’t get a surprise when you do.

You can get a good idea of most types of insurance by reading the policy documents, but your SHARE adviser can also be a great resource to help you to understand the details.

The key points

Most personal insurance policies have a few key things to watch for. Here are a few of them.

Exclusions: Your policy might include things that aren’t covered. Sometimes, that will be things that the policy doesn’t cover anyone for. Other times, it might be things that specifically relate to you, perhaps because of your health or family history.

Wait times and standdowns: Your policy may include a wait period before it pays out – maybe a number of weeks or months that you have to be off work before income protection pays out, for example. There might also be a standdown period, which means that after you take the policy out there is a set period of time in which you cannot make a claim for certain things.

Premiums: You should have a clear idea from the outset of what your premiums will be for the policy. They will change over time, and it can be helpful to know what you can expect when that happens. If you have questions about insurance affordability, your SHARE adviser can help you to work through them.

Key policy terms: Not all insurers define things in the same way. Your policy should include definitions of key terms like employment, permanent disability and the medical conditions covered.

Updating your cover

As your circumstances change, you may wish to update your insurance cover. A regular checkup is often recommended to make sure that your insurance is keeping up to date with your life.

Sometimes, tweaks are required to your policies with your existing provider. Other times, it might be appropriate to consider another insurer’s products.

A SHARE adviser can help you do this to ensure you do not lose any of the benefits of your current policy. Sometimes, if you change from one insurer to another a condition that was covered by the first might be considered a pre-existing condition and excluded by another.

We’re here to help

Insurance is an important part of most people’s financial picture. At SHARE, we can help you make sure that your policies are giving you appropriate protection, and that your cover remains fit for purpose, no matter how your circumstances change. If you’d like to discuss any aspect of your insurance, drop us a line today.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.