If
you buy a protection or insurance product such as life insurance,
critical illness or payment protection insurance alongside your
mortgage, the person selling it to you will ask a number of questions
about your health and lifestyle.
'Non-disclosure' occurs where an applicant does
not tell an insurer a fact, which would have led to a different
underwriting outcome - typically an increased premium, exclusion
or refusal to insure.
Forgetting to mention a minor health issue such as headaches,
a smoking habit or occasional pins and needles, could mean that
your policy won’t pay out due to non-disclosure - even if your
illness or condition is unrelated.
Non-disclosure is one of the most common reasons for a policy
not paying out so it is best to always be honest when asked questions
by a mortgage or insurance sales adviser.
Non-disclosure can be a controversial area as insurers, who can
reject claims where information material to their assessment of
taking on a proposal has been left out, make fine judgments as
to whether an omission was innocent, reckless or outright deliberate.
About
one in ten claims are rejected for non-disclosure.
In practice, insurers generally pay out on claims where the policyholder
has innocently or inadvertently left out information but they
come down heavier on customers who they feel deliberately omitted
important information.
Read
enough? Just want a quote? To get
your best mortgage quote quickly and easily we can
put you in contact with a recommended mortgage adviser. It's free,
completely confidential and there's no obligation at all. Simply
fill out the form below
