How life insurance is purchased affects the payout

How life insurance is purchased affects the payout Buying life insurance through a superannuation fund often results in fewer disputes, faster processing times and higher "payout ratios" than other ways of purchasing cover, new data show. Statistics from the Australian Prudential Regulation Authority¬†for the year ended June 30 reveal that insurance bought through super funds paid out 85 cents of every dollar of premium in claims for death and 95 cents for total and permanent disability (TPD) claims. When it comes to life insurance, it pays to read the fine print.CREDIT:GABRIELE CHAROTTE For insurance purchased through financial advisers, the payout ratio plunged to 42 cents in the dollar for death policies and 49 cents for TPD. The Australian Securities and Investments Commission's (ASIC)¬†life insurance comparison tool, which uses the same APRA data, shows that for TPD claims there were 19 disputes per 100,000 claims for cover obtained through group insur…
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