May 18, 2020

How to avoid non-disclosure - a word of caution

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.

Our client

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.

Next steps

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.

Please feel free to read our Independent client reviews, or read about the team at Future Proof

Call me back

Interested in related stories?

Jon’s moving story – being diagnosed with cancer.

The protection industry pays out over £5.7bn in claims in 2019

What questions will an adviser ask me?

Will my claim be paid?

Why you can trust Future Proof.

The benefits of an index-linked insurance policy

Take a look at our handy guides ‘What Cover is Right for me?’

Do you suffer from a medical condition and concerned you can’t secure Life Insurance?  Please view our ‘Medical Guides’ for further information.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

Links to third-party websites exist for information only, and we accept no responsibility or liability for the information contained on any such sites.
The existence of a link to another website does not imply or express
endorsement of its provider, products or services by us or St. James’s Place.