by Dee Whimp on
9th February 2012
So, with a little help from your
friendly insurance adviser, you have completed your application
form . . . divulging a raft of (somewhat personal) information to a
relatively unknown entity, in order to ensure your financial
security should the worst happen to you.
Have you ever wondered exactly why it is that you have provided
your life story? And how important is it that you give the
right information?
The obvious answer for medical insurance is that the
insurer asks a myriad of questions to ensure they have your
full medical history. If your medical history contains an
injury or illness, the chances are your insurer will exclude these
from your policy. These can sometimes be reviewed after a
period of time, if you have been symptom and treatment free,
or after clear screening tests.
When it comes to life, trauma or disability cover, the
underwriting process can take a slightly different turn. It
is more about looking at the perceived
future risk of you making a claim.
With life insurance, you would expect to make a claim at some
stage (being in the event of your death). If you have a
perceived higher risk of claiming, such as having a heart
condition, then there are a couple of options for the insurance
company. They could include a 'loading' (higher than normal
premium) to cover the increased likelihood of paying your claim, or
you may have the condition excluded from the policy altogether.
It is crucial that any and all medical information is provided
at time of application, no matter how insignificant you think it
may seem. This can often be why the insurer will ask you to
undergo medical exams or blood tests, or they will request
historical medical information from your GP.
Imagine - in the future you may only need to provide a hair
sample which will give the insurer a health assessment within
minutes, direct to their PC - greatly reducing the time it takes to
have your insurance put in place.
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