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.
