Insurance policies are designed to provide financial support in times of need. But what exactly triggers a claim in different types of insurance? Let’s explore.
Life Insurance and terminal Illness
A life insurance claim is initiated upon the death of the policyholder. The beneficiaries must file a claim with the insurance company, providing a certified death certificate and other required information such as the policy number and cause of death. The claim process can often be started online or by contacting the insurance company directly.
A claim may also be eligible under a life insurance policy if the policy holder has been given a terminal diagnosis by their medical specialist. This means the policy can be arranged to be paid out while the policy holder is still alive.
Trauma Insurance
Trauma insurance, also known as crisis cover or critical illness insurance, provides a benefit for medical conditions that seriously compromise the insured person’s current and future quality of life. The exact conditions covered will vary from policy to policy and are always defined in the policy document. Examples of trauma medical conditions include cardiovascular conditions, cancer, stroke, and kidney failure. The benefit amount is payable if one of the “medical events” you’re insured against occurs.
Total and Permanent Disability (TPD) Insurance
A TPD claim can be made if you’ve had to stop working because of an illness or injury, and you are unlikely to return to work . The level of impairment for physical injuries, chronic illness, or mental health is different from other types of compensation. Common TPD claims include workplace accidents leading to serious injuries like spinal damage, severe mental health conditions that prevent one from working, and chronic diseases or medical conditions such as cancer.
Income Protection Insurance
Income protection insurance, also known as disability insurance, pays out if you’re hurt or sick and can’t work. It covers a wide range of illnesses or injuries that could keep you from working, including anxiety and depression, broken bones or spinal cord injuries, muscle spasms, chronic fatigue, cancer, complications from pregnancy or childbirth. You can claim under your income protection policy for any injury or illness that stops you from working in your usual job.
In conclusion, each type of insurance has specific triggers for a claim. And each insurer has different coverage definitions
It’s crucial to understand these triggers and the terms of your policy to ensure you’re adequately protected. Please call us for further clarification around your policies, or if you think you may have had a situation that may have triggered a claim.
