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Trauma/Critical Illness

Discussion in 'Superannuation, SMSF & Personal Insurance' started by AO, 30th Mar, 2010.

  1. AO

    AO Active Member

    Joined:
    1st Mar, 2010
    Posts:
    27
    Location:
    Perth
    I was just looking through some critical illness policies going around and I noticed that almost every company has really similar definitions.

    Any reason?
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi AO,

    Most policies are similar, naturally the devil is in the detail of definitions.
    The main illnesses are heart attack, stroke, cancer and coronary artery angioplasty. There are many other definitions though cancer seems to be to highest for claims for most insurers.

    Cheers,

    Dan
     
  3. Dolfinwise

    Dolfinwise Well-Known Member

    Joined:
    30th Sep, 2009
    Posts:
    47
    Location:
    Brisbane
    Insurance similarities

    The reason most Trauma policies are the same is competition. As soon as one player gets a competitive advantage the others scramble to catch up. Nearly all Trauma is sold by financial advisers. Many of us use software to analyse which policies are the best for each client. Companies know they have to rate well on the major analysis points of the software to retain their market share int heir chosen markets. Hence all the policies of the major player evolve in the same direction.

    Its the insurance strategy quality that will vary based on the quality of the advice. This will affect, tax deductibility of premiums, access to benefits, how the policies are bundled to minimise costs and cash flow implications etc.

    Regards
    Jason

    Parallels H-Sphere
     
    Last edited by a moderator: 6th Apr, 2010