Fali Mistry –
Premium Cover provides a financial safety net, in case you become unfortunately disabled as a result of sickness or injury, and hence unable to earn your regular income.
The monthly benefit is designed to relieve you of the financial responsibility of paying your policy premium during treatment and recovery.
Many insurance providers have further enhanced this product and provide financial relief to a client if he or she is made redundant or becomes bankrupt (in case of self-employed) for a period of six months.
This is provided to ensure that policyholders are constrained to lose their valuable insurance benefits, when they are most needed.
People who have availed insurance policy through their banks, generally do not have this cover in their policy. Hence, it is very important to open their policy documents and see if they have availed this valuable benefit.
How the Cover works
Premium Cover features include a Waiting Period after which the benefit commences and the claim period which can be determined by clients depending on their age, income pattern and other circumstances.
For instance, the ideal way of availing this benefit would be to have a wait period of four weeks and a claim period to the age of 65 or 70, whichever is affordable.
These would depend on individual risk factors and on the occupation or health of policyholders and clients.
A younger client can avail a shorter wait period of four weeks and claim payable till age of 70, as premiums are very cheap.
While an older client can opt to avail a waiting period of 13 weeks and claim payable till age of 65; they can sustain the 13 weeks’ wait period as they will be more financially sound and premium would become affordable again.
This is a priceless product and guards your insurance policy.
For more information about this and other policies and insurance products, please call me on 021-426858 or 0508-467872.
Fali Mistry is a Registered Financial Adviser at Mazda Financial Services Limited based in Auckland. He is a Member of the Institute of Financial Advisers. Phone: 0508-467872; (09) 6255060; Mobile: 021-426858;
Email: fali@insuresecure.co.nz; Website: www.insuresecure.co.nz
