There is no end in sight for COVID-19 and naturally many people have concerns about their health, future plans and current financial situation.

Our services include advising you on options and helping you to obtain the benefits available under your protection policies.

Common queries include:

  • Premium options  for those financially affected by covid-19 and
  • What is covered and can be claimed.

 

Here is the run down:

IS THERE ANY PREMIUM ASSISTANCE IF I BECOME UNEMPLOYED? And/or WHAT CAN I DO IF I CANNOT AFFORD TO CONTINUE PAYING MY PREMIUMS?

Some insurance products can provide some premium relief or alterative options to assist you retain your cover during these tough times.

A good income protection policy can provide you options such as:

  • Allow premiums to be waived for a period of up to three months. During the three months that the premium is waived, your cover is still active.
  • Pausing your policy for up to 12 months. The term used by insurers is a “premium suspension”, which means that you will not pay premiums for this period – however your cover will be inactive.
  • Change the policy ownership from being owned by an individual to being owned by your superannuation fund i.e. your premiums will be paid via your superannuation balance instead of your personal cashflow – you are still paying for the policy just not personally, cover features can vary and this will eat into your retirement savings.

IS COVID-19 EXCLUDED FROM MY EXISTING INSURANCE POLICIES?

All existing retail insurance policies do not exclude death or disablement due to the coronavirus, regardless of the severity.

CAN I CLAIM ON MY INCOME PROTECTION POLICY IF I CONTRACT THE CORONAVIRUS?

You must satisfy a continuous period of being disabled which is called the “waiting period” before the monthly benefit is payable. Waiting periods can vary from 14 days, up to 2 years. If you have satisfied the waiting period, then you are eligible to claim.

DOES MY INCOME PROTECTION COVER ME WHILST BEING UNEMPLOYED DUE TO CORONAVIRUS?

It is important that you check your policy to see how your income protection is being paid for as it varies:

  • Income Protection fully paid by your superannuation account generally will not cover you whilst being unemployed when your illness or injury occurs, unless you are unemployed because of an illness or injury for which you are currently on claim.
  • Income Protection partially or fully paid by yourself generally will cover you for illness or accident whilst unemployed for 12 months.

 

REMEMBER:

Insurance can be quite complicated as there are many variables, options, and benefits that you may be unaware of. VJC Wealth Management is your adviser and here to help and guide you through the claim process and discuss options on how to ensure you remain covered during these challenging times.

If you would like to discuss your options or if you would like some advice on how we can assist in protecting you and your family please contact us.

Stay Safe

 

General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC WM accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC WM for this purpose.