NSW Mistake in Life Insurance Policy - What to Do?

[Luvlee]

My father-in-law has been paying for life insurance for himself and my mother-in-law for the past 10 years. My mother-in-law passed away last week and when he called the insurance company, they said the policies were only for accidental death.

Is there anything that can be done as he had asked for life insurance, not accidental death insurance

 

[Paul Cott]

Luvlee, have a look at the exact wording of the relevant parts of the policy I.e. what specific risks it covered. Sometimes it is best to be sure the product being purchased is, in fact, the product believed to be purchased. I hope it is in fact, in your case.

Good luck.

 

[Luvlee]

Thank you Paul,

I have had a look and it doesn't even cover death, it's just for serious accidents. He was asked if he wanted life insurance when they got a home loan and believed that is what he'd been paying for.

 

[Paul Cott]

Some organisations will sell insurance product with little regard for the customers want or need as long they get the commission on the sale unfortunately.

 

[Luvlee]

I know and the fact that it was the Commonwealth Bank makes it worse. Had it been him that passed away, my mother-in-law would have ended up having to sell their house as she didn't work.

They were lead to believe they were each covered for 500k