What is a Product Disclosure Statement (PDS) and why it matters
A PDS is one of the most important documents you'll receive when taking out insurance. Here's how to read one and what to look for.
Two of the most misunderstood parts of any policy are exclusions and waiting periods. Understanding them upfront avoids nasty surprises.
Exclusions
Exclusions are events the insurer will not pay for — for example pre-existing conditions, certain high-risk activities, or self-inflicted injury. They are always listed in the PDS.
Waiting periods
A waiting period is the time between when cover starts and when you can claim a particular benefit. Health insurance, for instance, applies waiting periods to many services.
If you are switching insurers, ask whether waiting periods you have already served will be recognised.
Always check the exclusions section of the relevant PDS before assuming you are covered.