Income Protection Insurance Exceptions, should I be extra cautious?

Simply put, my super has this cover for me, but it covers up to 2 years max.

A financial advisor has helped me apply for cover beyond the 2 year period. However through all the questionnaire I have done regarding health etc. They have come back with exceptions.

This is where my unknowns is, there's about 3 exceptions put out, one relating to lower back, as I had mentioned in the past I have had some lower back strain before, but they obviously noted it and mentioned this is an exception, i.e. any diseases or illness relating to lower back and muscular areas isn't covered. Is this very broad? I mean I am worried that if unlucky I injure my upper back or something else they'll end up twisting it to relate back to the lower back as being the cause. Knowing insurance companies they would be king of assholes to be doing that.

Another one was relating to a cyst on my wrist which has no impact on anything and is just liquid, but an exception put in place, again if I injure my arm or twisted my wrist, would attribute it to this?

Lastly flat feet (plantar fasc…. can't spell the rest), again what could they spin up to dodge anything else regarding this condition?

I am unsure if I should accept this policy with these exceptions.

If this isn't the best place to ask, feel free to link me to a dedicated forum that's reputable in this area.

Thanks everyone

Comments

  • Hi OP,

    I work in the industry - exclusions are usually placed on existing conditions otherwise you'd be slapped with a loading. As the insurer is entering into an indefinite contract with you from their end they need to think what may arise off this in 10, 20 or 30 years.

    It also depends on your occupation. Someone working retail may be off work due to a bad back but an office worker not soo much.

    If you feel it's unjust don't accept the terms or ask for a review. At the end of the day the insurer may not have had enough information to properly understand your circumstances.

  • Look around for other insurers. Not all will ask this question. Some will cover you 75% without questions and 85% with.

    • Just keep in mind 85% is 75% plus 10% for super.

  • Good for you for being cautious and actually seeking out income protection insurance in the first place. So many people don't do this and put their long term quality of life at risk.

    I'd get a few quotes anyway because it's not cheap and you do want to know you will be covered. Also check the conditions on which you are "fit to work". My policy is within my own career (i.e. problems that stopped me working in what I do today couldn't mean I could be said I was fit to work in another totally unrelated role)

  • Tbh OP,

    It is great that you have disclosed as per required however with the amount of restrictions that the insurance has imposed on you, I would question what do they "actually" cover?
    Is the policy stepped or leveled?
    Does the policy have Guaranteed Insurability?
    I mean your Super has TPD automatically embedded … and payout will drop over the years.

    I understand the "what ifs" however IMO, if an Insurance Company can find one little anomaly to wriggle out of paying, they will.

    What company is the Insurance arm for your Super?
    There are restrictions on Insurance from Super compared to standalone. Please research.
    Please google a review on them and see if they like paying out.

    Cheers

  • Damn 2yrs+?!

    There's a guy at work who has been off for about 6 months, still has his personal stuff on his desk. I actually didn't realise income insurance covered that long!

    • You can be covered up till age 65 with most insurers both group and retail and even up to age 70. This is why they've assessed the OP more stringently.

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