Suspension of Cover
Suspension of Cover is a temporary pause in your insurance policy, where your cover is placed on hold under specific circumstances agreed to by your insurer.
Suspension of Cover allows your insurance policy to be temporarily paused rather than cancelled altogether. During the suspension period, you generally won't pay premiums, but you also won't be able to make claims for events that occur while your cover is suspended.
Not all insurers offer this option, and the circumstances in which it may be available can vary. Some policies allow cover to be suspended if you're travelling overseas for an extended period, taking unpaid leave, or in other situations approved by the insurer. The conditions, length of the suspension and process for restarting your cover will depend on your policy. Some policies also let you suspend certain benefits within a policy or suspend the policy entirely.
One of the advantages of suspending a policy, rather than cancelling it, is that you may be able to resume your existing cover without having to apply for a brand-new policy. This can be particularly valuable if your health has changed since your policy first started. However, it's important to understand exactly when your cover stops and when it recommences, as you won't be insured during the suspension period. This is important to know that if you first experience symptoms during the suspension period, you won’t be able to claim even when the policy is back in force.
Before requesting a suspension, it's worth discussing your options with your adviser to ensure you understand how it may affect your protection and whether there are alternative solutions available.
Why It Matters
Suspending your cover may help if your circumstances change temporarily, but it also means you'll generally have no insurance protection during that time. Understanding how a suspension works can help you avoid unexpected gaps in your cover.
Common Misunderstandings
"Suspending my policy means I'm still covered."
No. While your policy is suspended, you generally won't be able to make claims for events or symptoms that occur during that period.
"Every insurer allows Suspension of Cover."
Not necessarily. This feature isn't available on every policy and conditions vary between insurers.
"Suspending my policy is the same as cancelling it."
No. Suspension is intended to be temporary, whereas cancelling your policy permanently ends your cover.
"I can restart my policy whenever I choose."
Your insurer may have specific conditions or timeframes for resuming your cover, so it's important to check your policy terms.
FAQs about Suspension of Covers
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This depends on your insurer and policy. Some insurers allow suspension in specific circumstances, such as extended overseas travel or approved leave.
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In most cases, premiums are paused during the suspension period, but this varies between insurers.
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Generally, no. Claims for events or symptoms that occur during the suspension period are usually not covered.
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This depends on the insurer and the terms of your policy. Some policies allow cover to resume without requiring a new application.
If your circumstances have changed and you're considering suspending your insurance, it's important to understand how this could affect your cover. Talk to a New Vision Financial Services adviser before making any changes so you can make an informed decision and maintain the protection that's right for you.