Hello New and existing Miners,
I consider myself an advocate for all Miners in this area. As an Ex-Miner I am acutely aware that most insurance providers DO NOT OFFER Comprehensive cover such as Income Protection or Total Permanent Disability cover. Some only offer it to engineers or other professionals with degree qualifications. A few others offer cover that can prohibitively expensive or with non standard terms.
There are only 3 major insurers out of 14 Australia wide that offer any form of Income Protection across the board, in the varied occupations and fields of mining. This is a real improvement, as 3 years ago, we had only 1. From those only one will cover non trade qualified staff working underground. Another will only cover you, if you work an amount equal to or less than 40% of your time underground, and two of these insurers don’t like offering cover if you work with explosives at all.
Importantly you should be aware if you have recently moved here from overseas; one insurer will place an exclusion on insuring you if you move back to your previous country. Yet another wants you to have permanent residency or be the process of applying for residency. There is nothing more frustrating than applying to an insurer and completing all the paperwork, to then be told of these only after you have applied.
SO REMEMBER THESE GOLDEN RULES.
1. You get what you pay for! (Sound familiar) In other words if you have found some wonderfully cheap policy, it may be cheap only until you go to claim on it, then some fine print excludes your claim.
2. You are more likely to underinsure yourself. Chances are you are only thinking of why you need cover now for and not what your past needs or future requirements are! What is your situation like when you think about this? Worst case situation if you budgeting skills or cashflow are poor– you may use your Super to pay for what you really need, but get some professional advice as this has obvious consquences to your long term Super balance.
3. Some direct, and some accident and illness insurers may not offer to re-insure a particular group of Miners, the next year your policy comes up for renewal. This has happened with a smaller insurer, just this year affecting some Contractors with heavy vehicle licences. So Ask the question of the insurer, is the policy “guaranteed renewable”?
4. A stepped policy (Age Based) is ONLY cheaper for the shorter term period. So are you are taking the cover for a longer term commitment such as a mortgage or an addition to the family. A stepped policy will make the insurance company more money out of you in the long term as premiums climb in latter life (you become older). The downside with a level policy is that it makes it harder to change insurers latter on, if new competitors enter the market with better products.
5. Don’t lie about health issues on the application form, as the insurer can access your medical records (Medicare records) from the past.
6. If you have any skeletons in your closet or come from a mixed family, make sure you have a binding nomination for your beneficiaries with life cover, and go get a will done professionally, not a will kit.
7. The younger you are when you take out cover; the cheaper it is likely to be in the long term.
8. A person on a stepped policy is most likely to cancel a Trauma policy before they are likely to claim on it. Insurance companies know this so don’t let the Financial institution only offer  you a stepped policy as it will increase yearly in price, and will cost more in the long term. You may be inclined in your 50’s to cancel a stepped policy as it becomes more expensive in latter life, just when you are most likely to claim on it.
9. Don’t be sold something that is rubbish. Do you think if they will insure you with no health questions that they are actually going to pay out for that? These types of Policies EXCLUDE any pre-existing conditions. A recent survey found that 30 to 50 % of direct insurance claims are denied.
Accidental death policies ONLY COVER ACCIDENTS not any sicknesses or illnesses, so spend the money and get a real policy unless it is the ONLY insurance cover you can get, after trying your other options.
10. PLEASE GO GET ADVICE FROM A PROFESSIONAL and not a call centre salesperson with only one option (their employer’s option) over the phone. Chances are the Bank/call centre rep has little or no experience and can only sell you a few products or one product. That isn’t advice! ASK THE Call Centre salesperson if they can do the following
Can they give you unbiased advice based on your personal situation with access to all insurers covering miners? If they say no go elsewhere!
11. Shortsighted insurance salespeople will take your application, knowing they cannot offer you full cover, they will come back to you with the offer of a lower end product. They are hoping that in your desperation and time already taken you will take the inadequate cover, thinking it is better than nothing. Don’t accept it.

12. Income Protection is tax deductable, and any income from it is considered income by taxman as a general rule, so let your accountant know you have it.
LAST but not least ask the question, will the person organising the cover be personally handling and or helping with your claim, at your time of need, when you are likely to be sick lying in a hospital or worse?

Please feel free to use this link to  to contact Michael Ord at michael.ord@coremotion.com.au

In preparing any advice in this site Coremotion Pty Ltd, T/A minersinsured has not taken into account any particular persons objectives, financial situation or needs. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend you obtain financial advice specific to your situation before making any decision.

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