Bcovered is an insurance specialist firm. We saw that there was quite a gap in the financial planning industry, so we took on the job to focus on the insurance needs of our clients, we have also developed strategic alliances such as other financial planning firms, accountants and legal specialists and look after their clients insurance needs.
We strictly adhere the privacy act, but more importantly value our client’s privacy. When applying for insurance the questionnaires can be very personal and some could say invasive as the life companies need to rule out any risk when underwriting the applicant. We deal with every case with the utmost discretion and throughout the application process and keep our clients informed with the progress of the application.
It is a possibility, to avoid any disappointment we always tell our clients that they may be required to do a medical, it all depends on your previous medical history, the benefit amount you are being insured for and your lifestyle choices. A medical examination may not be requested but a medical report may be requested.
Yes, but you cannot have more than two people covered on any one policy.
Yes, you can choose up to five nominated beneficiaries to whom the lump sum payment can be paid out to. In the case where no beneficiary is nominated, the lump sum is paid to the policy owner/estate.
TPD definitions vary between insurers but there are differences between two main types of TPD:
- Own Occupation – You will be paid if by reason of accident or injury you are unable to work ever again in your own or normal occupation.
- Any Occupation – You will be paid if by reason of accident or injury you are unable to work ever again in any occupation for which you are reasonably suited by education, training or experience.
In most cases “accidental” types of traumas are covered immediately, although many insurers impose a waiting period (usually 90 days after the policy is accepted) for certain illnesses eg cancer, stroke, heart attack. This is particularly important when changing or replacing policies as you may not be covered during the waiting period on the new policy for certain conditions.
Agreed value policy – requires you to prove your income upfront, however once this is completed your benefit generally cannot fall beneath this agreed value in the future. This policy is suited to self employed and those with variable incomes. You pay extra for this type of policy.Indemnity policy – requires you prove your income at time of claim. If your income has dropped since you commenced the policy, you may not be able to claim the full benefit. These policies are generally cheaper.
Income insurance premiums are set depending on:
- Occupation (for example, a manual laborer pays different premiums to an office worker);
- Whether or not you smoke;
- The time you choose to wait before receiving payment;
- Waiting and benefit periods;
- Amount of income insured; and
- Agreed or indemnity type policy.
Please note that Income Protection premiums are fully tax deductible, however any benefits paid will be assessable for income tax.