Recently ‘Fair Go’ ran a story on insurance claims being denied due to non disclosure of existing health conditions, and concerned WealthDesign clients who saw the show have been contacting me querying this.
Great query!
Here’s what I know …
1. Once a policy is in force, you don’t need to tell the insurer if your health changes.
2. If you are taking out cover, you are obliged to tell them everything a reasonable person would disclose.
3. Once a policy has been going for over three years the non disclosure rules are more difficult for the insurer to decline a claim, unless it is clear non disclosure.
In over 20 years I have never had a claim declined over non disclosure. The problem normally arises with insurance sold over the internet or via the post. They use short applications and ask limited questions. (So people aren’t getting good quality advice.) The onus is then on the client to read the small print and understand they must declare all relevant information.
The trick if you are changing insurers, make sure you tell them everything and never cancel your existing cover until the new cover is in place.
The key is to use a good insurer and an experienced adviser.
So in short, don’t worry; if you’re with WealthDesign, we have your back!
John Barber