As mentioned in last week’s blog, several insurers in Australia have added exclusions for insurance cover related to pandemic related lost income, illnesses or even death. What does this mean for you? Could you potentially be excluded from your TPD cover in a crisis situation like this?
Well, the short answer is that it depends on your insurance provider and what their policy says.
Some insurance companies such as QSuper have now placed a 30 day exclusion period for pandemic related illnesses. However, the company has stated that these exclusions will only apply to new covers taken out after the 18th March, but won’t apply to those who held insurance covers with them prior to that date.
The insurance companies are evidently trying to reduce expenses for their existing members and do not want to make huge numbers of payouts during this pandemic, that is why they are scrambling to add in clauses and exclusions.
According to these new exclusion periods, if you contract a long term illness or sadly pass away from Coronavirus within 30 days of taking up additional insurance cover that you did not previously have, you will not be covered.
But don’t be overly alarmed, NOT ALL INSURANCE POLICIES HAVE THESE EXCLUSIONS.
For example, CareSuper which previously had a pandemic exclusion in its TPD and Life cover has actually removed the exclusionary policy for any COVID 19 claims and will continue to cover their insurance holders as per their agreements. That’s a relief for those of you who are with CareSuper.
Other providers too such as Hesta will be continuing to cover their members and have not placed any exclusions. This is good news because this is the industry fund that caters to the health and community workers who may be more worried about contracting the COVID-19 virus.
What do I need to do?
As each insurer has their own policies. Contact your Superannuation/Insurer and ask for the applicable policy and PDS.
We recommend you call your insurance provider as soon as possible to find out what you are covered for at the moment and have some peace of mind.
Can I speak to a lawyer at Shaheen Legal?
Yes, you absolutely can. We are here for you throughout this difficult time and can guide you to making the right insurance decisions to protect your TPD cover.
Want to learn more on this topic? Check out our popular post How will Covid-19 impact my Life Insurance?
Call us today on (02) 9854 5552 or click below to book a FREE 30 minutes consultation with one of our experienced lawyers!
