Life Insurance

[John67]

Hello, I have 5 years left on my life insurance policy, linked to my property, which included cover for very high blood pressure. Recently told I have AF. Do I need to inform my insurance provider and any others?

[Beancounter Volunteer]

Hi John

I am fairly sure that unlike travel insurance life insurance is underwritten at the date the policy is take out, if your health improves or gets worse there is no need to tell the insurer, but you might wish to check this out with an independent body such as the insurance ombudsman (just ring them)

This is not true for travel insurance where we are obligated to tell them of any changes.

Be well

Ian

[John67 in reply to Beancounter]

Hi Ian, many thanks for this. Regards John

[Bob56]

Hi. Beancounter is right if the life insurance is linked to a mortgage then it will have been rated when you took it out and is designed to cover you in the event of death or illness, depending on what sort of cover is provided ( I only say illness if you have something over and above simple term insurance for the life of the mortgage). Either way you shouldn't have to inform them.

[John67 in reply to Bob56]

Hi Bob, many thanks. Regards John

[Bob56]

Sorry I should have added that as Beancounter says if you have an annual travel policy then you would need to let them know and for any insurance where you are asked for regular health declarations usually made clear when you renew the policy. if in any doubt it is best to check it out, and there is usually information available online to help.

[PeterWh]

As the others have said the cover is for the life of the policy. The insurance company takes the risk. For most they are healthy and never claim!!! Is it just a life policy or does it cover things?

However check your policy carefully. Also you need to look at the policy T&Cs on the day you took it out. If you can't find it you can request a copy. Also any supplemental conditions and clarifications (they do sometimes issue these). This may mean that illnesses etc that are around now or have better definitions now aren't specifically mentioned.

The reason for checking is not only what it covers you for but the action you need to take. Certain conditions may be excluded. The insurance company may also want you to see a consultant appointed by them. This happened to an ex work colleague almost 20 years ago and if he hasn't seen their consultant then the claim would have been invalid. However this sort of restriction may have been by a specific insurance company or may no longer be included because considered too restrictive.

Another thing is to check whether it is specifically against the amount outstanding or a fixed sum, or covers payments, etc. Also have you made any overpayments because if it is strictly against the outstanding amount then cover is no longer there on the amount overpaid. I knew someone who had made a number of overpayments and then was diagnosed with terminal cancer and he then withdrew all the overpayments from the mortgage account so as to increase the life cover.

[John67 in reply to PeterWh]

Hi Peter, Many thanks for your reply. Regards John

[John67 in reply to PeterWh]

Thanks for this Peter. Regards John

[PeterWh]

John - any update?