Buying and claiming

How do I buy life & health insurance?

When buying Life & Health Insurance it can be difficult to make decisions around what is right for you at different stages in your life. Many people use a financial advisor who will be able to help you assess your own circumstances, identify which product is right for you and assess the level of cover that you need and can afford. They will be able to guide you through the process and answer any questions you may have on life & health insurance products and any other benefits you receive such as from your employer. It's also possible to take out the product directly with a bank or insurance company.

You'll normally need to provide the company with information about your personal circumstances and answer questions about your health, occupation and pastimes. Historically an insurer would have asked you to complete a questionnaire on your health in order for them to gather these details. However, more commonly insurers are now asking customers for their health, occupation and pastime details over the phone, with this information sometimes being collated by a trained medical professional. This process is known as ‘tele-underwriting'. When this process is completed your insurer will confirm what your premium will be.

Quite often Life & Health Insurance is sold alongside a mortgage, as is Mortgage Payments Protection Insurance (MPPI). MPPI usually provides cover for when you can't work for a short period of time due to illness or redundancy and generally does not provide long term cover for very serious illnesses or a pay out should you die.

All about claiming

When it comes to making a claim the first thing to ensure is that anyone you want to benefit from your policy knows that you have the policy and that it is kept somewhere safe. All the details about claiming for the policy should be clearly documented on any paperwork and the bank or insurance provider you have the policy with should be able to guide you through the process. Documentation such as a death certificate may also be needed but again the insurance provider can advise on what is needed at what stage.

A concern that many people have is about insurance companies not paying out on policies. What is essential and can prevent any issues when it comes to claiming is to provide accurate information when you take the product out, and also to ensure that as your circumstances change your policy is updated. It may be that you have more children and need more cover or that you've paid off your mortgage and can reduce the level of cover you require. A good tip is to regularly review your personal finances and to speak to a financial advisor about financial planning.

Here are some common events that may happen during a policy's duration:

• Being processed: If a claim needs to be made while your application is being processed but before a premium is taken most insurers offer cover free of charge. This free cover is normally subject to terms and conditions.
• Stopping paying your premiums: Your policy will normally cease and you will no longer be covered.
• Cancelling your policy: You will not normally get any money back as most life and health insurance policies do not have a cash-in value at any time.
• Making a claim: If a claim is made and paid out on then your policy will normally cease.