Insurance is to protect you when things go wrong, so make sure that if you ever do need to claim that your policy is valid so you can get the full benefit that you have been paying for.
There are some instances when not giving the correct information to your insurer when you’re asked for it could result in your policy being canceled or you receiving a smaller payout.
Life insurance is a common example of this.
What information do I need to provide?
When you apply for a life insurance policy, you will be asked several questions about your age, height, weight, medical status, and so on. Your insurer does this to work out what the risk is of insuring you, and how much charge they should charge you.
All of these questions should be answered truthfully. If you’re concerned about anything pushing up your premiums, then do something about it before you apply. For example, lose weight, give up smoking, or switch from cigarettes to carts ccell vapes.
Your insurer needs to know about your current health and medical history. You will likely to have to provide a lot of detail, so prepare this information in advance. If might help to get your medical notes from your doctor.
Non-disclosure can have serious consequences. If you don’t provide all the information that you have been asked for or withhold information, this could impact their decision to insure you. Your policy could also be voided when you make a claim.
What could be classed as non-disclosure?
There are a few things that people often life about when they apply for life insurance, as they know the answers could change the prices that they pay for their premium.
Smokers can pay a lot more than non-smokers for life insurance, so many people are tempted to tell their insurer that they don’t smoke, despite being regular smokers. Even if you are only an occasional smoker, you do need to tell them.
You don’t always need to have a medical in order to get life insurance, but it is common for insurers to spot check medical records of those applying in order to catch out customers who are being dishonest. If your medical records show that you are a smoker, or have any conditions that you have not disclosed that are a cause for worry for your insurer, they will likely deny your application.
If you have life insurance, and then die from an illness that is related to smoking, but you told your insurance company that you were a non-smoker, then your insurance could cancel the policy and refuse to payout, or might offer a much smaller payout, which will make up for the difference in premium between a non-smoker and a smoker.
It won’t matter how much you’ve paid into your policy either. You might have been paying your premiums for forty years, but if your insurer finds out that you have given them false information, they may act as though your policy was never valid in the first place.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)