Insurance policies are very different from provider to provider and the inferior ones can have some nasty hooks. Almost all of the nasty ones are sold directly to consumers through the internet or over the counter sales like Banks because they know the lay person would not have a clue about these dangers. They are not sold through professional Advisors as these policies wouldn't stand a chance of being recommended to their clients.
Let's look at one such example.
An exclusion on a Bank Life insurance policy which states that the insured person is not covered if the death is caused by an illegal act.
In New Zealand, we do not have a reminder system to renew our licenses when they expire. We have it for our Rego and sometimes WOFs but not for Drivers Licenses, and since these licenses are issued over long periods of time like 5 and 10 years, when it does expire, there is a very high chance that you will have driven around for quite some time before it comes to your attention that you are driving without a currently valid license. Now if you die from an accident whilst driving at such a time, that Insurance policy can very easily decline a claim because you were driving illegally.
HAVE A THINK ABOUT THAT.
Now is it worth rolling the dice and buying these sorts of policies directly or is it better to go through a non aligned Insurance Advisor to get free advice (they would not charge you any fees as they get paid commissions from the providers) and get the best product without such wordings for a similar price that you would anyway pay for the directly sourced shonky ones?