Understanding insurance exclusions

Understanding insurance exclusions

Insurance policies for your life and health are important for protecting your finances from various risks. But did you know there might be things your policy doesn’t cover? 

These are called exclusions, and they depend on your specific situation, like your medical history. Knowing about these exclusions helps you decide what policy is best for you. Sometimes, you’re able to remove exclusions after some time, but this is different in every case.

What are insurance exclusions?

Exclusions are things your insurance won’t pay for. Your policy will list them, showing situations and conditions not covered. For personal insurance, like health or life cover, common exclusions can include health conditions you already had or dangerous hobbies or jobs.

It’s important that you understand what your policy covers and what it doesn’t. As Insurance Advisers, part of our job is ensuring that our clients do understand and accept these exclusions. We walk through each of them with every client.

Exclusions are important for insurance companies processes as they help insurers manage known risks which would increase the potential for a claim.

Why review your coverage?

Checking your insurance regularly, with help from an adviser, ensures it still suits your needs, especially as your life changes. Our Advisers will touch base yearly to check in and make sure your policy is still relevant to you and your situation. It helps you find any gaps due to exclusions. Sometimes, you can ask to remove certain exclusions, e.g. if your health significantly improves where the risk to the insurer is reduced.

We’re here to help

Judy Steiner, our dedicated Insurance Adviser, knows personal insurance inside out. By knowing your situation, she can identify any potential coverage gaps, and be by your side when talking with your insurer. Feel free to reach out to us. Remember, understanding your policy details brings peace of mind, and that’s where we can help.

Photo by che YU 

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance. Link Financial Group Ltd trading as Mortgage Link and Insurance Link FSP 696731 holds a licence issued by the Financial Markets Authority to provide financial advice. Insurance Link (NZ) FSP 446867 is authorised by that licence to provide financial advice. Please visit www.insurancelink.co.nz/available-disclosure for more information and Disclosure information.