How to avoid non-disclosure – a word of caution
How many times do you hear someone commenting on insurance companies saying, “They are all the same, any chance they can get to wriggle out of paying a claim they will?”
In reality, most insurers pay well over 90% of all life insurance claims. The majority of unpaid claims being due to ‘non-disclosure’. This means important information was not supplied/ omitted by the applicant at the time they made the application. Below we will explain how to avoid non-disclosure.
We received an email from a large insurance company about a policy we set up within the last 12 months. We were advised that the client had been in touch with them and that he had supplied additional medical information. The insurer now had to take this additional information into account.
Upon investigation, the client confirmed they had been diagnosed with coronary heart disease 5 months BEFORE making the application. If our client had died during the term of the policy, his claim would have been turned down (due to this non-disclosure).
The insurance company has now cancelled the policy and premiums have been refunded.
Non-disclosure can snowball
To compound matters, our client has recently been advised that he requires a heart bypass. This means that he will not be unable to get ANY cover for quite some time, if ever.
We should have been made aware of this when he originally decided to make an application. If this was the case, we would have advised him to apply with a different insurance company.
One which would have been accepted him with ‘loaded terms’. I.e an increased premium to take into account the additional risk that his life posed to the insurance company. Then his cover would have been in place before he was told that he needed a bypass operation.
All mainstream insurance providers have their own underwriting criteria. At Future Proof, we also have access to specialist insurance companies. These insurers don’t deal directly with the public. They offer more specialised policies which are designed to provide cover where other major providers can’t.
Part of our research process involves contacting many if not all insurers to find out the best possible outcome for our clients. This avoids any nasty shocks later on during the underwriting process.
How to avoid non-disclosure
The moral to this story is to be clear, open and honest when you apply for any insurance. Make sure you disclose all of your medical information and medical history. You will also be sent a copy of the application, which you should check carefully for any errors or omissions.
We have up to date knowledge of the ever-changing landscape of underwriting for all providers in the UK and are committed to thorough research so that you don’t have to. What’s more, our advice comes at no obligation and with no hidden costs. You don’t pay us directly but we do get paid by the insurer if you decide to start a policy with them.
Whilst you are welcome to get a quote online but we would recommend you talk to one of our advisers.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.
Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.Call me back
Interested in related stories?
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