Fali Mistry –
People who are very premium conscious often fall into the trap of changing their insurances frequently to save a petty sum.
These people become the target for some unethical advisers, who, under the pretext of saving premiums do more damage than gain to the clients.
What clients do not understand is that ‘Pre-existing Health Conditions,’ which have developed after taking the medical insurance cover, will not be covered under their new policy.
Shocking experience
They would experience the greatest shock in their life when the claim filed under their new policy is declined by their new insurance provider.
They would then realise the damage done by changing their medical insurance provider.
In most cases, it would be too late to help.
While filling out the application, most of the advisers do not help the client in understanding the terminology behind each question.
Medical tests
For example, if a person is told by his GP that his tolerance towards glucose (sugar) is low and needs to take care, the client conveniently thinks, “I am not a diabetic or impaired glucose, as I have not been prescribed medication.”
This is a classic example of non-disclosure as the application form specifically asks, ‘Have you been diagnosed as impaired glucose?” and the client says ‘No.’
Similarly, many clients get frequent headaches or migraines, which they think is common and hence not relevant to disclose. An insurance company will consider this as non-disclosure and will decline a claim if a GP referring asks for an MRI scan.
I therefore advise our readers not to change your medical cover to save premiums, even if you think that you are fit and healthy.
Often people do not know what the GPs records in their medical notes.
Medical Insurance is an important area of cover and you must always have sound advice from a qualified and registered adviser.
I will be happy to discuss your needs. Please call me on 0508-467872.
Fali Mistry is a Registered Financial Adviser at Mazda Financial Services Limited based in Auckland. He is a Member of the Institute of Financial Advisers. Phone: 0508-467872; (09) 6255060; Mobile: 021-426858; Email: fali@insuresecure.co.nz; Website: www.insuresecure.co.nz
