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Continuity of cover refers to situations where the origins of an insured event can be traced back to the period of time during which a previous policy applied. It is critical that any new insurance policy be prepared to accept liability for any such events, rather than exclude such events. The reason for this is obvious: if there is no such continuity,  the insured person may find themselves unable to make a claim.

Murphy’s Law is the one to remember here: if something can go wrong, eventually it will. This, of course, is a general principle that can often be overlooked: things with a low probability of happening, still happen. (Forrest Gump was more prosaic: &*#$ Happens!)

All insurance advisers always remember this principle. This is because they know that, if they advise enough clients, then they can be sure that a claim will eventually be made. That is why a prudent adviser assumes that every policy that they recommend will be the one that results in a claim. So, when a quality adviser provides a service, they work backwards from the point of a claim and identify everything that needs to be done in order for a claim to be successful – and then ensure that these things are in place.

You can make use of this approach as well. When taking out insurance – any form of insurance – make sure that you disclose everything about your health and other relevant situations. Imagine that the insured event has already happened and you are making a claim. No insurer is going to pay out a large sum without investigating the policy and seeing if there are any grounds for not paying. Insurers look for loopholes: that is just a commercial reality. Any non-disclosure on your part may render the premiums you pay potentially useless. At best, non-disclosure means that you – or your bereaved loved ones – will have a fight on your hands.

So, remember Forrest’s advise: &*#$ Happens. Assume it has and ask yourself: am I actually insured for that?