When you purchase an insurance policy through Best Deal Insurance, we'll complete the application with you over the phone and answer any questions you may have.
When your application is submitted to the insurance company it will, in most cases be underwritten by them. Underwriting means that the insurance company will assess your application details and check the level of risk they are looking to insure.
There are generally three types of underwriting:
1. Guaranteed acceptance - No underwriting. These types of plans do not have any underwriting and guarantee to accept your application as long as you are an Australian Citizen or Permanent Resident and meet the insurance companies criteria on age and occupation.
2. Limited Underwriting. These types have plans ask you a limited number of questions about your health, occupation and lifestyle and will typically not require any medicals or blood tests
3. Full underwriting. These types of plans require you to answer all questions that are relevant to you health, occupation and lifestyle and the type of insurance you are applying for. If the insurance company think it is necessary, they may request medical evidence from your GP or other health professionals and in some cases may ask you to have a medical or other tests. Full underwriting plans are typically cheaper because the insurance company gets to asses the risk of every case individually.
In most cases policies are accepted at normal rates, however in a limited number of cases an insurance company may offer you "alternative terms". This means that the insurance company believe an individual application may represent a higher risk for them to insure.
There are generally three types of alternative terms:
1. Loadings. This is where an insurance company may charge a higher rate than the standard premium due to an increased risk. For example a higher risk occupation or a particular health issue
2. Exclusions. This is where an insurance company may exclude paying a claim for a particular issue but will cover the customer for other claims not relating to that issue. For example someone with a history of back problems may have any claim relating to the back in the future excluded in the policy but can claim for other things
3. Limitations. This is where an insurance company may limit the level of risk they are insuring. For example a customer might apply for $5 million of Term Life Insurance but the insurance company decide to limit the policy to $3 million because the customer has other Term Life policies already.
If you are applying for any type of insurance, Best Deal Insurance will discuss and explain the type of underwriting that is relevant to you free of charge as part of our service to you - we're here to help you get the best deals
If you are offered alternative terms Best Deal Insurance guarantee to check with other insurance companies to see if they would offer better terms to ensure you get the Best Deal. Regardless of whether we can or can't find an insurance company who may offer better terms we guarantee to discuss any alternative terms with you before you make any decision to proceed with a policy.
Important information* Your Duty of Disclosure
If your application is subject to underwriting, under the insurance contracts act of 1984 you have a duty to inform the insurance company of every matter that you know, or could reasonably be expected to know, is relevant to their decision whether to accept the risk of insurance and if so on what terms and in accordance with the questions asked of you in the application.
Your duty of disclosure applies from when you start the application until we have confirmed it is completed. If you do not answer all questions honestly and completely, the insurance company may reduce or refuse to pay a claim or they may cancel the policy.
You will be required to sign the insurance companies application declaration as part of the application process
If you have any questions regarding your duty of disclosure please ask one of our consultants in confidence - we're here to help you
Just relax.....we'll do the searching for you!
If you have any questions regarding underwriting please call one of our consultants on 1300 061 733 for a confidential discussion or request a free call back (below)