Individual Life Insurance vs. Direct Life Insurance with No Medicals
July 26, 2022

What is salary sacrifice into Super and how does it benefit you?

Taking Out Individual vs. Direct Life Insurance

There are a plenty of ads out there saying you can take out Life Cover with automatic acceptance – that means no medical check ups. Sign up, they say, and you’ll be covered in under two minutes.

But what issues will you face when it’s time to claim?

Individual Life Insurance

Think automatic acceptance is a benefit? Think again.

When taking out individual Life Insurance (whether it’s Life Cover, TPD, Income Protection or Trauma) you typically have to have a medical exam so Life Insurance companies know where your health sits. These Life Insurance companies are basically assessing you before taking your money to pay the premiums.

If you are found to be too high risk, they will notify you and may offer amended terms. By completing a medical exam, you know exactly what you are covered for before handing over the money to pay for it.

Direct Life Insurance with automatic acceptance

With Direct Life Insurance with automatic acceptance, your medical check is done at claim time. If you’re found to have a pre-existing medical condition at that time, the insurance company assesses whether or not they would have covered you initially if they had known about your medical condition when you applied for cover.

It essentially means, they are taking your money before they assess your eligibility for cover.

Would you feel comfortable paying premiums for Life Insurance without even knowing what you’ll be covered for? If you’re thinking about applying for Life Insurance, make sure you’ve chosen the best policy for you. Contact us today to have a Wealth Smart adviser guide you through your policy decision and application process.

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