Peter Griffin Planwise Financial Services

When you apply for life insurance, an insurance company will usually ask you to complete an application. This will usually involve disclosing details such as: age, occupation, smoking status, any dangerous or hazardous past-times; and also prior health conditions.

The insurance company takes this information and 'underwrites” the risk it is willing to take on and accept. They are making a judgement about the likelihood of any type of claim occurring during the lifetime of the policy. So, the underwriter has to consider not only the present risk but the risk of one happening in the future as well.

This is called 'disclosure”. You have a duty to disclose to the insurance company all information you know (or could be reasonably be expected to know), that would influence the insurance company's decision to insure you or not. When you make a claim they may look further into your personal medical history. If they discover that you did not provide the material information when applying, they may decide to amend the terms of your insurance policy. If they discover that you haven't told them something material, they may even 'void” and cancel your cover – and not pay your claim.

This is called 'non-disclosure”. You do not want to find yourself in this position. The whole purpose in having the insurance is so you can claim. We encourage our clients to disclose all information an insurance company might require.