Disclosure isn’t just the title of a 90’s thriller starring Demi Moore; when it comes to personal insurance, it’s hugely important to disclose any current or prior medical conditions. In fact, it’s a requirement when your policy is issued, benefits increased or policy is replaced.

Failure to provide complete and accurate disclosure could result in a claim being declined and/or your policy being cancelled or avoided. This may also impact your ability to take out insurance in the future.

Most policies are underwritten, but beware of those that aren’t.

Highly experienced Authorised Financial Adviser Peter Chote says: “Many of those handy, off-the-shelf policies fall into this category. They might seem easy and tempting, but often they are not underwritten until claim time, so they may not cover any conditions that were pre-existing when the policy was taken out.”

Here’s another important consideration. If you replace a policy with a new or updated policy, you may find that you lose some benefits but gain others. Remaining with the same insurer can sometimes be good idea, as it’s possible that they may pass on certain benefits, or wording, from your previous policy. This can be an advantage at claim time.

If you have any kind of insurance policy, it’s vital to understand exactly what it covers, under what conditions it will pay (and when it won’t), and what you can expect if you make a claim.

“Problems can arise when the person who is insured doesn’t fully understand the scope of their policy,” says Peter.

To help you get the policy that’s right for you, be sure talk to an expert financial adviser. Call us now on 0800 438 238 or click here to send our team an email.

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AdviceFirst is a Financial Advice Provider (FSP23242).