October 6, 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 people say of insurance companies, “They’re all the same, any chance they 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 are due to ‘non-disclosure’ which means that important information was omitted by the applicant at the time they made their application……How to avoid non-disclosure?

Our client

We received an email from a large insurance company about a policy we had set up 12 months previously. They informed us that the client had been in touch with them and supplied additional medical information, which they now had to take into account.

After some investigation, it transpired that the client had told them that he had been diagnosed with coronary heart disease 5 months BEFORE making his application.   Had our client died during the term of the policy, his claim would have been turned down due to non-disclosure of this vital information.

The insurance company has now cancelled his policy and refunded his premiums.

Non-disclosure can snowball

To compound matters, our client has recently been told that he requires a heart bypass, which means that he will be unable to obtain ANY cover for quite some time, if ever.

We should have been made aware of these facts when he originally made his application because if we had, we would have advised him to apply to a different insurance company who would have accepted him with ‘loaded terms’. Although loaded terms carry an increased premium to take into account the additional risk that his life posed to the insurance company, 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 who 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 solution for our clients. This avoids any nasty shocks later on during the underwriting process.

How to avoid non-disclosure

The moral of this story is to be clear, open and honest when you apply for any insurance and ensure that you disclose ALL of your medical information and past 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 with no obligation or 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.

*ABI  May 2020 Association of British insurers

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

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Why you can trust Future Proof.

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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.

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endorsement of its provider, products or services by us or St. James’s Place.