Insurance Claims Uncovered: Matt Warren on What Really Happens When You Claim
Most people think insurance companies are out to avoid paying claims. Matt Warren, Financial Adviser at Skye Wealth, wants you to know the truth. In his conversation with Phil, Matt takes us behind the curtain of life insurance, TPD, trauma and income protection claims – showing that with the right advice, claims work very differently from the myths.
From the outset, Matt explains why people claim. Cancer dominates life cover and trauma policies, while mental health conditions are rapidly rising under TPD and income protection. Accidents, injuries and chronic health issues round out the main reasons. For Matt, these statistics aren’t abstract; they’re reminders of real clients going through some of life’s toughest times.
According to the latest APRA/ASIC Life Insurance Claims and Disputes Statistics (2023), Australian insurers pay out about 97% of life cover claims, 84% of TPD claims, 85% of trauma claims and 95% of income protection claims. “If you’ve got the right cover and your claim meets the definition,” Matt says, “you’re highly likely to be paid.” He also explains why it’s not 100% – sometimes claims are submitted early, before waiting periods are met, or for events not included in a policy definition – but these exceptions are a fraction of the overall picture.
One of the biggest takeaways from Matt’s video is the stark difference between having an adviser and going direct. APRA and MoneySmart data show average payouts of about $510,000 for life cover through an adviser versus $134,000 in a super fund; $664,000 for TPD versus $145,000 in super; and $8,000 versus $4,000 per month on income protection benefits. Trauma cover, on the other hand, has been barred inside superannuation since 2014 – meaning the average trauma payout in super is $0, but outside super (via an adviser or direct policy) it averages about $258,000. These numbers highlight why adviser-backed policies can dramatically improve financial outcomes at claim time.
Matt also shares why timing matters. TPD claims, for example, often have a three-to-six-month waiting period to confirm that a disability is truly permanent. Advisers guide clients through these nuances, saving time and stress during a claim.
At Skye Wealth, Matt’s passion is making risk advice simple and supportive. He believes starting early is key – “time is your friend” – and encourages people not to wait until disaster strikes to understand their cover.
Watch the full video with Matt Warren https://www.youtube.com/watch?v=iXYftasLvuM
Check out Skye Wealth’s YouTube page https://www.youtube.com/@skyewealth
If you’d like to get started, book in a call here: https://www.skye.com.au/phone-call
