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Detour
6th Nov 2002, 13:22
How important/prudent is it to inform abt critical illness, which has been cured, while taking a policy?

Any suggestions and information much appreciated.

Grainger
6th Nov 2002, 14:43
We're talking about an insurance company here.

They'll happily take your premium money for years, and then use any excuse not to pay out if you ever have to claim.

I'd declare it.

erick_p
6th Nov 2002, 22:21
That is an interesting predicament, Detour. What makes you want this in the first place? (That is a rhetorical question)

I am not sure if the company would ever find out, and how. If your medical history is traceable then they will have their claws on you, otherwise remember there are over 10 million people affording insurance this year alone. How much can they check.

Detour
6th Nov 2002, 22:25
Thank you for the suggestion, Grainger.

What might be the repercussions of telling them abt it. Would they increase the premium by ridiculous amount or would they probably refuse the policy or may be make an exclusion?
... a bit inexperienced in all these matters...

Thanks!

Detour
7th Nov 2002, 03:39
Not telling, sounded like a good easy option , only that, like Grainger commented, what if they take the premium for years and then refuse to pay the claim when the time comes? But what are the chances of their finding out , do the companies do a full background ckeck before paying up, and what about the privacy of medical history?

G.Khan
7th Nov 2002, 03:55
Non disclosure of essential information is the biggest single cause for underwriters to deny a claim. No they won't check ten million people but they will check anyone with a big claim.

Some illness has a ten year exclusion on it, if pronounced clear after ten years then they will cover you for that illness. Some forms of cancer are such illness.

You will almost certainly find in the small print of your application that you are agreeing to a complete disclosure of your medical history. Failure to disclose......see para.1

Tell them, you have no choice if you/your estate ever makes a claim.

Brizzo
7th Nov 2002, 07:25
If the policy concerned is more savings than insurance the insurer might take a reasonable view. Many advisers these days suggest that you keep the insurance separate from the savings. There is a historic link because there used to be tax relief on life insurance premiums.

It has been suggested that anyone who suspects something nasty should visit a doctor in another country for diagnosis, bacause any doctor in the UK is obliged to tell your GP, and once it is on record you will never get insurance again.

Detour
7th Nov 2002, 13:14
That's exactly the worry, to not be able to get any insurance once it's on the record, as now it's only in the medical history. Would the result of disclosure be permanent denial of any insurance policy? It's not been long enough for it to be pronounced clear as yet.

Ludwig
7th Nov 2002, 13:26
Detour, the mere fact that you have asked this question suggests that the information you seek to avoid telling the insurer is likley to influence their costing of any life cover. Certainly in the UK (if that's where you are) if you materially non disclose an item it could well result in a non payment of a claim, so whilst you may have had the chance to pay premiums they will have been to no avail. If you declare it and they take you on then at least they will pay out.

You could have a word on the qt with an insurance company and ask them to let you have an informal view, speak to the underwriteers not some help desk clerk, or get your broker to do it for you (probably better). If it's life or PTD cover you're seeking your list of interests on your profile includes some stuff that will probably get you loaded anyway!

dgutte
7th Nov 2002, 15:20
As a PPL studying, Life Insurance, Pensions and Investment Adviser I come across your question a lot.

The simplest answer is that you must disclose everything as the insurer can (and will with big claims as G.Khan points out) request your medical history from your GP.

Insurers will look for any legal excuse not to pay out.

Some insurers look fairly favourably on a fully recovered critical illness as they believe that you will be more closely monitored health wise than your average applicant.

If you haven't already, get an adviser to look into it. Personally, in these cases I talk over the situation with a senior underwriter at each insurer to get an idea of how they will treat the application. This is before the final choice of insurer has been made. Therefore you are not going into it blind.

OK, sales pitch...... it costs nothing to have an adviser do the leg work for you so why not drop me a private e-mail to get the ball rolling. Just a thought.......!

dgutte

Ludwig
7th Nov 2002, 15:29
and make sure he shares the commission with you! It can be mega mega money for next to no effort - could even fund the remainder of his ppl!:D ::D

BlueEagle
7th Nov 2002, 22:59
Detour - Underwriters have a saying, "There is no such thing as a bad risk, only a bad rate".

By that they mean that anything can be insured as long as they charge enough!

You are possibly looking at increased premiums until you are considered clear rather than total exclusion, that is my best guess. You should take dgutte up on his offer and get professional advice too.

Best of luck.:)

Detour
12th Nov 2002, 10:03
Looks like one thing is pretty clear, that the history should be mentioned while taking the policy or else it'll be difficult/impossible to claim.

Questions:

1. With the increased premium does it still make sense to take the insurance policy?
2 Does everybody take the insurance savings plans as a future protection, I mean to save up for the future?
3. What are the other good ways of saving up for future?


Being relatively young and inexperienced in these matters, I do really appreciate all the input .