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Traits of a Responsible Life Insurance Company

Last modified: 7 May 2013

Buyers opt for term life insurance, income protection insurance and other types of life covers to ensure that they get a compensation payment when they need financial help the most. Insurers in Australia are legally required to follow a set of laws to help buyers get fair and just results after purchasing a life cover from the selected insurer. In addition, to following these laws, private insurers that are reputed are expected to possess a certain number of positive traits that help buyers and policy holders get the expected results after purchasing a life cover. While each insurer in Australia has different rules and terms for offering policies and compensation payments, majority of the good insurers try their level best to keep policy holders and buyers happy by following these spoken and unspoken rules.

 

Privacy

Good insurers do not sell information of buyers and policy holders to third party companies. Good insurers make sure that their members can trust them and they ensure that all the information stored on their servers is well protected. Good insurers also use SSL encrypted pages and other types of safe payment gateways to process all payments made online.

 

To be just and fair

While insurers in Australia have the right to cancel a policy based on valid factors such as risk factors associated with age, health and occupation; insurers do not have the right to refuse a policy or cancel a policy based on the buyer’s race, caste, sexual orientation and religious beliefs. In addition, insurers cannot refuse or cancel a policy based on disability and marital status unless the insurer has valid grounds to do so. Insurers in Australia do not have the right to change the benefits offered to the policy holder based on these factors, unless the insurer has valid reasons that can be justified legally.

 

Honesty

Insurers in Australia cannot force clients to purchase a plan and they cannot use false statements to coax buyers into purchasing an insurance plan. Insurers cannot make misleading statements or claims to ensure that buyers purchase a new policy from them. Reputed insurers make it a point to make payments on time. The compensation payments are made within 2 days – 2 months depending on the type of policy purchased by the policy holder.

For instance, the compensation payment for funeral expenses insurance plans can be paid out in just 2-4 days where as the compensation payment for term life covers may be paid out in 2 -3 weeks. Good insurers consider terms, conditions, eligibility criteria and at times personal situations of the policy holders before making a claim payment. Insurers are required to make a onetime lump sum compensation payment for certain types of policies within the given time frame. Insurers are required to make monthly payments for income protection policies within the given time frame.

 

Legal Requirements and Fair Claim Procedures

Insurers are required to ensure that all premium payments are accounted for and handled legally to ensure that the policy holder gets the said benefits from the policy. Reputed insurers take a fair and just number of days to make the claims payment. Reputed insurers try to consider the problems of each policy holder and may go an extra mile to ensure that the policy holder or his beneficiaries get the said compensation payment. To help the insurer, policy holders are always requested to be patient, to provide accurate information related to the claim, not to hide any information relevant to the claim, to provide a completed claims form, to provide the necessary documents and to understand that the insurer is working as fast as possible to provide the necessary results.

Reputed insurers often provide details of how to file life insurance claims online and some insurers may also provide information such as step by step guides to help policy holders and their beneficiaries understand how to file a successful claim. Insurers cannot promise to accept and approve all claims, but they can certainly provide the required information that can help policy holders ensure a successful claim.

 

Premium Payment Benefits

Good insurers make it a point to offer maximum premium payment options to help buyers make premium payments quickly and easily. Good insurers offer a wide range of complimentary benefits to new buyers such as comparison services, multiple quotes and online life insurance calculator tools. These services are meant to help buyers make a calculated decision and purchase a policy that is ideal for them. Usually maximum benefits are offered by insurance agents such as insurance comparison websites. Insurance comparison websites are able to offer these benefits since they offer a wide range of policies from multiple insurers hence offering comparison services and multiple quotes from different insurers is possible for such websites.

 

Additional Benefits

Other than offering the said benefits, good insurers try to make policies as cost effective as possible. To do this, reputable insurers often provide buyers and policy holders with discounts such as the advance premium payment discount and the combined policy discount for purchasing 2 or more policies from the same insurer. Good insurers and insurance agents may also offer healthy lifestyle discounts to encourage buyers to quit smoking, exercise and eat healthy. Some insurers waive off underwriting fees for additional policies provided that the buyer purchased a combination of eligible policies from the selected insurer.

 

Customer Service Options

Reputed insurers offer a wide range of customer service options to buyers who are interested in purchasing life insurance products. Some of the options that are commonly offered by insurers and insurance comparison websites include a help line number for urgent queries, online chat options with an insurance representative during working hours and quick and prompt replies via emails. Payments are usually accepted on a fortnightly, monthly or yearly basis.

The policy holder is given an option to choose from the desired payment plans and payment premiums plans such as stepped or levelled premium plans. Buyers and policy holders are also given the option to pay from their credit card, online bank account or savings account for the selected policy.



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