TAL insurance excludes people who die from COVID-19

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Simon Hampel, 27th Mar, 2020.

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  1. Simon Hampel

    Simon Hampel Founder Staff Member

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    Australian insurer moves to block doctors and patients getting coronavirus cover

    One of Australia's biggest life insurers has moved to cut off payouts to customers who die from COVID-19, including frontline doctors fighting the deadly virus.

    An internal document from insurer TAL, obtained by the ABC, reveals the company has begun adding an exclusion clause for the coronavirus in new insurance policies.

    "No benefit will be payable under this cover for any claim resulting directly or indirectly from COVID-19, any related condition or infection or any complication thereof," the clause reads.

    The exclusion applies to some policies sold through insurance brokers or directly by TAL, but does not affect existing customers or people who take out life insurance through their superannuation.

    TAL, which is owned by the Japanese insurance giant Dai-ichi Life and has almost 4 million Australian customers, declined requests for an interview but in a statement said the exclusion had so far been inserted in "only a very small number of new customer policies".

    "If during the underwriting process it has been determined that they have recently travelled abroad, or are showing symptoms of COVID-19, or are in high risk groups (broadly based on current government guidelines), then these customers will be individually assessed, and individual underwriting terms may be offered," the statement said.

    ... read more

    What a click-bait beatup of an article this is. I expect better from the ABC to be honest.

    Facts:
    • people with existing life insurance with TAL are still covered for COVID-19 related deaths.
    • TAL is seeking to reduce their risk for people taking out new policies and who are at higher risk of contracting COVID-19 because of their activities or their occupation
    The other way they could have done this would be to allow people to take out a new policy, but to include a waiting period of, say, 2 years for COVID-19 related deaths (similar to what health insurers include) - which would achieve largely the same result.

    My point is - the time to take out life insurance was years ago. When you first had financial obligations such as a mortgage, or when you first had dependents who relied on you for example a wife or kids, etc. Not now just because a new virus has hit which increases your risk. That's not how insurance works.

    It's like signing up for health insurance while you're in the ambulance on the way to hospital. That's not how insurance works.

    It's like signing up for property insurance while your house is on fire. That's not how insurance works.

    Personally, as much as I hate insurance companies - I don't think TAL is doing anything wrong here.

    If the medical staff working in the front lines with COVID-19 already had a TAL life insurance policy, they would be covered for COVID-19 related death. It's just new policies that will have exclusions, and I think that's sensible risk mitigation on their part.

    Seriously people - get your insurance sorted out before you actually need it. That's how insurance works.
     
    Angel, Joynz, paulF and 3 others like this.
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    New policies. 99.999999999% won't be impacted. Just those with new policies. It's like life cover has a suicide limit of 13 months. Or bushfire won't cover a known fire event
     
    craigc and Simon Hampel like this.