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Essential reading to help you select the right insurance cover

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All too often, we are too busy and end up buying insurance that is the cheapest or the one that has won many awards ... Consequences of buying an insucient or wrong Accident, Sickness & Unemployment insurance can be disastrous. Unfortunately, there is no shortcut. Good research is KEY in selecting the right insurance

The four most commonly used terms by any insurer in payment protection and insurance protection policies are:

1. 2. 3. 4.

Initial exclusion Back to day 1 Excess days General exclusions

Increasing competition and keenness of the insurers to be competitive have resulted in introduction of such options. You now have a wide range of choice and you can pick and choose from. However it is important to ensure that your selection that matches your requirements. Investment of time and eort in choosing the right policy always pays o. Especially if you end up being in a situation where in you need

to make a claim. Good research not only assists you in selecting the right policy but also helps you avoid paying for the options you dont need. However the challenge is you must know what these terms mean and more importantly how the choice of these terms is going to impact you. This brochure is a no non-sense approach to explain some of these commonly used terms in simple and easy to understand language.

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TERMS EXPLAINED...
Initial Exclusion:

It is that period of you having an income protection, payment protection or ASU policy when a claim will not be allowed by the insurer. This means that if you buy unemployment policy on the 1st of April and it has an initial exclusion of 90 days, if you are made redundant before 29th June, you cannot make a claim under this policy. This is normally applicable only to Unemployment covers, it is however important that you check these before you decide to buy.

rst day of your redundancy but on the 30th day so one month in arrears.
Excess days:

Other terms
Benet Period Number of days or months or number of benet payments that will be made to you. Pre-existing condition Any sickness, condition or injury whether diagnosed or not that would have existed prior to the start of the policy. Period of cover The period between the policy start date and the termination date for which the correct premium has been paid by you. Claim period Time during which you are unable to work due to an accident, sickness or unemployment and receiving benet under the insurance policy. Waiting Period The period for which you will have to be continuously unemployed or unable to work due to an accident or sickness before you are entitled to receive the monthly benet.

Insurers either have a built in excess days or allow you to choose your excess days. You would have noticed that the price reduces as you increase the excess days. Excess days are the number of days that you are willing to wait after your claim has been made and allowed. For example if you choose an excess of 60 days, it will be three months before you see any payments from your insurer. The rst 60 days is the excess period that you have chosen not to be If you are transferring your policy cover from one insurer to paid and then after the 60th day, the waiting period of 30 days another, the last thing you want starts. Hence, your rst payment is to be excluded and hence important to check the insurers will be in 90 days after your policy. Normally if you have had a claim. This becomes very important if you are using this policy for over 6 months and insurance to protect your have not made any claim with your previous insurer, this will be payments, while the payment protection insurance will pay waived o. However it is important that you ascertain this out, it will not during the excess days. before you buy.
Back to day 1: General Exclusions:

Only some policies are truly back to day 1, dont be surprised if you have bought a cheaper policy and when you make a claim the insurer does not pay you until this period elapses. Back to day 1 means that your income or payment is protected from day 1 of your redundancy, accident or sickness. When you make a claim, there is generally a waiting period before your claim is paid by the insurer. While this is normally 30 days, it varies from insurer to insurer. It is important for you to nd out what the waiting period is. So if you have bought a cover that is back to day 1, your waiting period of 30 days, your claim will be paid from the

These are exclusions that will disallow your claim. It is mandatory for every insurer to cover this o in their declaration statements and highlight clearly but as you have so much information to read, it is easily missed. For example, if you are not working due to stress, anxiety, depression or other conditions of a psychoneurotic condition, your claim will be disallowed. Before you buy your policy, please read these general exclusions carefully and understand the implications of the exclusions.

Although every effort has been made to keep the above information accurate and up to date, no warranty either expressed or implied is given to this effect. This report is intended to be used as only a general guide only to accident, sickness and unemployment, income protection and payment protection insurance policies. Please speak to your insurer/ broker before making your nal decision. Best Insurance and its partners shall not be liable directly or indirectly for use of information contained in this document. All rights reserved

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