Frequently asked Insurance Questions

You’re bound to have plenty of questions about what insurance cover you need, and how you’re going to get it. Feel free to read through our frequently asked questions, or simply get in touch and our qualified team will guide you through the process at your own pace.

Q: What do I need to tell the insurance broker when I am completing my application form?
Answer: You must answer all questions fully and honestly. If you are in any doubt its always better to disclose. It is far better for the insurer to have too much information than not enough.

Q: What if I apply for my insurance and then a few months later remember that I forgot to mention an illness or injury that I have?
Answer: The best thing to do is to contact your broker or the insurance company straight away and give them all the details in writing. The insurer will then assess your cover based on this new information. They may need to amend the terms and conditions but this will depend on when the illness or injury happened and what the illness or injury is or was.

Q: What is a premium?
Answer: A premium is the payment you make to keep your insurance policy active and your cover in force. This payment is made to the insurance company who provides you with the cover. In return for you paying them a premium the insurance company carries your financial risk for the benefits you have taken cover on.

Q: What happens if I need to change ownership of my insurance policy?
Answer: There is a change of ownership form included in your original policy documents. This needs to be signed by the existing owner and the new owner (original signatures) and forwarded to the insurance company along with the original policy document. If the original document has been misplaced or destroyed a replacement document can be provided.

Q: What is a 'loading'?
Answer: It is an additional premium paid over and above the standard premium to compensate for the higher risk of a certain condition. Can be either a % loading or a per mile loading (an amount applied for every $1,000 of premium).

Q: What is an 'exclusion'?
Answer: The client pays the normal premium but is excluded from making a claim against a certain pre-existing condition on their policy.

Q: Why do the insurance company want to know what I do for an occupation?
Answer: Insurance companies assess different occupations as having different risk levels. For example a person who works in an office statistically has a much lower risk of being physically unable to work than a builder who is out and about, lifting and doing physical work.

Q: What if I start smoking after taking out my policy - do I need to tell the Insurance Company?
Answer: No, you do not need to tell the insurer. When your policy is taken out it is a 'snapshot' of your current habits and activities and you are underwritten based on these habits and activities. Consequently, if you take up smoking after the policy is taken out it is not relevant. however, for any additional cover you will be classified as a smoker. On the contrary, if you quite smoking please let your insurer/advisor know.

Q: What is 'underwriting'?
Answer: It is the process of assessing an application’s(client’s) risks and accepting liability under an insurance policy by applying an appropriate premium to cover those risks.

Q: What is 'Offer of Terms'?
Answer: After and application is assessed and underwritten, terms are offered back to the client to accept and begin paying a premium on.

Q: What is 'Deferrals'?
Answer: A policy will be deferred til further notice because the risk of an applicant cannot be quantified sufficiently to determine a premium.

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Being a highly-organised and trained planner,and a very practical person to boot, I made sure I acquired different types of insurance so that I will have peace of mind. I saw how Carmela was hardworking and so driven with her job as a financial advisor and I wanted to boost her sales apart from making sure I got covered in all aspects of my life. Knowing that I just about done this, Carmela offered me the best available plan. She wasn't really after making a few bucks from me but showed real concern so I can experience the best benefits. She was even able to convince my husband to get the same insurance coverage.

 Kudos to Carmela, I now at financial advisors and insurance coverage in a different light. More power!


Mayette Cope-Sant - Palmerston North


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