I must warn you this blog post is being broadcast from the highest soap box I could find. Regardless, I’m going to let you know something that really gets my goat (I’ve been working for weeks to fit that expression into a blog post!)

People who like to judge others with the value of hindsight

We all know the type, those annoying people who love giving you advice AFTER the fact and act all superior to you.

A great example of this relates to the 2011 Brisbane floods. Following the floods, a number of people did not have insurance coverage as the definition of ‘flood’ in their policy did not cover the event that took place. Suddenly, everyone was an insurance expert and was declaring ‘they should have looked at the fine print’. Really? You have read your policy back to front and can declare what you are covered for and what you aren’t? More to the point you compared the different definitions in each policy and chose one suitable to your situation? I call bullcr#p!

Insurance is confusing. There I said it. I have dedicated a large portion of my life to understanding insurance and I find it completely understandable that most people don’t understand their insurance. This is why I do what I do, to provide advice on life insurance, superannuation and investments.

I’ll give you another example. Recently a lot of industry funds have been changing their definition of total and permanent disability. Technically, what they are doing could be argued to be in contravention of the law but we will leave that discussion for another day. Anyway these industry funds (think the silly hand motion in the ads) have changed one word in their definition.
Unlikely to Unable.

One definition says you are totally and permanently disabled if you are unlikely to work again, the other unable to work again. Seems pretty small right? Think again.

This one word change has made a significant difference to whether a person can claim on their insurance in their time of need. They know this and that’s why they have done this. If you had checked the fine print you probably wouldn’t think anything of it. But I know better.

So don’t beat yourself up for not checking the fine print, rarely anyone does. Just get the right advice. Insurance is too important to get wrong.

This post is from Ben Brett. Check out our details in the About Us page. ​

Posted in: Insurance, Superannuation, Financial Planning

About the author: Cara Brett

Cara Brett proudly heads up Bounce Financial - founded in 2014 after a successful, decade-long career in the financial services industry. Cara’s experience encompasses both the financial product and financial advice sides. This gives her a comprehensive and holistic knowledge of all facets of financial planning.