It pays to be honest with your life insurer

It pays to be honest with your life insurer, as demonstrated with the death claims paid to the families of those who died last year. Less than 10% of complaints were rejected because the person requesting the policy did not disclose all the information requested.

When applying for life insurance, there are a number of questions about your health and the health of close family members that need to be answered in order for the insurer to calculate the risk of insuring your life.

Consumers usually provide all information and requests are paid when they die or become unable to work and earn a living. It cannot be stressed enough how important it is to be honest when applying for life insurance and disclose everything that is asked for. And never ever let the broker fill out a blank form for you.

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The long-term insurance law

The long-term insurance law that was enacted to protect consumers when they take out life insurance, says insurers have the right to cancel the policy if you haven’t disclosed important information about your health when you apply.

Claims are generally rejected for false claims, suicide within two years of taking out the policy, death from an excluded condition and in most cases, important information not disclosed to the insurer.

Consumers usually think they will pay lower premiums or get non-exclusion coverage if they don’t disclose all of their health information, but this usually comes to light when the person dies and the family is left with no income.

You are legally required to disclose all important information when applying for life coverage. According to section 59 of the act, important information is information that a reasonable and careful person will consider information that the insurer should be aware of in order to decide for themselves on the determination of risk.

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Honesty pays off in life insurance

It is therefore very important to answer all questions about your health, such as operations, specialist visits, abnormal results of scans and blood tests, hospital stays, medications you currently use and current habits such as smoking.

You don’t have to remember all the details, but it is important to provide information about the medical diagnosis, the year it occurred, the name of the doctor who treated you, and a summary of what happened. If the insurer therefore wants more information, he can contact the doctor.

Also remember to reveal information about your hobbies, such as parachute jumping or deep-sea diving. Remember, when you sign the application, you accept responsibility that everything is correct.

If you therefore fall short of your responsibilities, the insurer may decline your claim due to non-disclosure.