Life Insurance – Do the Insurers Really Pay?

In 2012 life insurance claims paid by insurers in Australia totalled $4.4billion. I’m pretty sure that those who received life insurance

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payments weren’t expecting to make a claim. None of us do. But consider what would happen to you or your family if you were to suffer cancer, heart attack a major accident or even death. What would life be like for your family if you’re not protected?

Last year at Beames and Associates we helped a client with a claim for child trauma insurance. I have this cover for my own kids. It doesn’t cost much but at the same time you never think you’ll need it. But this client did. And it meant financial concerns were the least of their worries, which was great as they had more to deal with than most parents ever will.

We deal with insurers who want to make the claims process as easy as possible. As they say – they are in the business of paying claims. Here is a video I’ve done discussing how the claims process works:

3 comments

  1. Life insurers have found myriad ways to delay and deny paying death benefits to families, civil court cases across the U.S. show. Since 2008, federal judges have concluded that some insurers cheated survivors by twisting facts, fabricating excuses and ignoring autopsy findings in withholding death benefits.

  2. @lifeinsurance May 31,2013

    As Dave mentioned above, Australian Life Insurers paid $4.4 Billion in 2012. Similar figures exist for the preceding 3 years.

    It is a stretch to compare the US System to the Australian one particularly when different laws, prudential regulators and economic circumstances apply.

    On a professional level, I’ve managed hundreds of claims over the years across workers compensation (a type of social welfare administered by the state government and funded by employers) and across privately-held disability insurance contracts.

    On a personal level, I have also had people close to me experience severe health issues necessitating claims across both types of insurance systems.

    Hands down, a privately-held quality insurance contract with a reputable insurer is the best way to protect loved ones in the event of an unexpected death or disability. The financial consequences of not being prepared include losing your home, the anxiety and stress on relationships, the severe inability to focus on one’s own recovery.

  3. Thanks so much for your comment John, a great response!

    My claims experience with insurers has also been positive. There is significant value in having an adviser assist with the claims process.

    In the event of a major illness or traumatic event, money is the last thing you want to be worrying about.

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