Non-disclosure – Why you should tell all when it comes to your life insurance

Non-disclosure – Why you should tell all when it comes to your life insurance

Whether you’re looking for the best life insurance or you simply want the cheapest life insurance for now, it’s important to understand the importance of non-disclosure and how not telling your insurer something could invalidate your policy.

So in today’s blog, the Cheapest Life Insurance is going to run through some of the things you should know when you are taking out life insurance and how honesty is always the best policy.

Non-disclosure is one of the most common reasons an insurance provider can refuse to pay out on on a claim.  While this sounds very serious, the sad fact is that many people do not even realise they have not disclosed something of importance.

Therefore, it’s vitally important to make sure you give your insurer as many facts as possible when it comes to applying for life insurance.

What follows is a list of facts that are very important when assessing the validity of an insurance application.  It may therefore be worth noting them down if you’re currently looking for quotes on life insurance, so you know you’ve covered what you can.

  • Your medical history
  • Your occupation
  • Income (useful for critical illness insurance)
  • Dangerous hobbies (this can include things like horse riding or even skiing so make sure you check)
  • Your family medical history
  • Your status of residency in the UK
  • Any foreign travel you have undertaken

To make sure you have provided all relevant information it is a good idea to inform your insurer of any changes (however small) between the time of applying for life insurance and the start of the policy itself.

As a guide – imagine you have applied for a policy to start two weeks from today.  You then visit a Doctor next week and you are told that you might be diabetic.  You have to inform your insurer straight away of this change before the start date, or you risk invalidating your policy.

If you don’t tell your insurer then you’re technically not going to be covered, especially if you pass on with something related to the diagnosis.  This means your family won’t receive a penny of the insurance you have set-up for their benefit.

While this seems very serious and perhaps a little miserable, it’s not all bad.  It means that if you dot the I and cross the T then you are making sure your family will be covered should anything happen and that you don’t have to worry about non-disclosure.

If you have any doubts at all regarding what to disclose then we recommend you speak to an independent financial adviser before taking out any kind of life insurance policy.  After all, better to be safe now than your family feel very sorry later.

 

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