Getting legal advice before you enter into an insurance contract is strongly recommended for many reasons. Importantly a contract such as a life insurance policy imposes legal obligations on a person to act or not act in a certain way and failure to do so usually results in a reduction or refusal of an insurance claim payout.

Insurance contracts have a cooling off period during which a policy holder can review the insurance documents and get legal advice.

A lawyer can help explain to you your obligations under the contract and the implications of your cover on any intended claim. For example a lawyer can advise you on the importance of taking out additional insurance covers and whether the policy is suitable for your needs and circumstances.

Examples of additional insurance cover includes:

• total or permanent disability (TPD);
• trauma cover; and
• children’s insurance cover.

Occasionally consumers or policy holders may want to bring a complaint against an insurance company. Disputes generally arise when a policy holder:

• does not agree with an assessment by their insurance company when processing an insurance claim; or
• have their claim rejected; or
• the insurance company refuses to pay the benefit to the right person.

In Australia all insurance companies have an internal dispute resolution process which is generally the first point of contact in case of any grievances. However it is often the case that policy holders are dissatisfied with decisions made by internal dispute resolution teams. Although legal representation is not required in most circumstances a lawyer can help evaluate your complaint and suggest what legal options might be available to you.