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Sometimes life insurance applications can take a while to be processed and it's not uncommon for applications to go on for a few weeks. This is because medical underwriting - the process where your medical history is examined - can take a lot of time, as insurers chase up previous doctors or ask you to take new medicals.
Life insurance interim cover provides you with cover during the time it takes for your life insurance application to be processed. It's a lumpsum benefit offered by an insurance provider that means if something happens to you before your application is approved, you'll still be protected.
Interim cover insures you temporarily while your life insurance application is still being underwritten or waiting to be approved. It's designed to remove any gap where you would otherwise have been without cover. If you were to die or be seriously injured during the application process, interim insurance can help pay off debts, loans, cover income payments and more.
Typically, interim insurance will cover you for up to 90 days, which is usually more than enough time for your life insurer to complete the underwriting process.
Interim insurance begins as soon as your insurer receives your completed application form. Generally, it protects you for up to 90 days. If an insured event (such as your death or disablement) were to occur within the 90 days, your interim insurance policy would pay out to you or your beneficiaries. It will cease when any of the following occurs:
The table below lists the life insurance policies available on Finder. To see if interim cover is provided, click "View Details" in the drop-down menu.
An adviser can help you find cover from trusted life insurance brands.
Interim insurance generally will not cover you for anything that is not related to the life insurance policy you are applying for. For example, if you are applying for death cover (another name for life insurance), you wouldn't be covered for income protection if you needed to take some time off work due to injury or illness. Interim insurance generally also excludes claims related to the following:
You will not be eligible for interim cover under the following circumstances:
The amount of cover you can get will differ depending on the life insurance cover you have applied for and the life insurance company. It's often the case that you will receive a lump-sum benefit equal to the proposed total of the sum insured. In other words, you'll get the same payout as the life insurance policy you have applied for. However, this can vary depending on the insurer. The following examples are an idea of how much you might receive.
Interim insurance usually lasts for 90 days. You should also be aware that the 90-day period is rarely, if ever, extended by life insurers, even if the underwriting process extends beyond that time frame.
It's uncommon for an insurer to take longer than 90 days to approve your application, so there's no need to worry about the underwriting process taking longer than this and your cover lapsing.
Generally, 90 days is considered more than enough time for your application to be approved so it's unlikely that your interim cover will lapse. If your application does go over that 90 day period however, you will no longer be covered by interim insurance.
You can help your application process along by following underwriting requests as quickly as possible and giving all the relevant information to underwriters upfront. You can also help by having a complete list of your previous medical history and any and all doctors who may have treated you in the past. This will help with medical underwriting as it's often the most time-consuming part of the application process.
The faster your application is processed the quicker you'll have protection. It also means you don't risk not being covered by interim insurance.
You can claim interim insurance cover the same way you claim for any other insurance policy. You'll need to notify your insurer. They will let you know what information they need to support your claim. This may include medical reports or a death certificate.
In most cases, you can apply over the phone or through an online account. Once you've sent them everything they need, they will assess your claim. Depending on the circumstances, an insurer will let you know if your claim has been accepted within two months of being notified about it.
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