Consumers 'must be honest with life insurance applications'
Published On 25 July 2007
It is important that consumers are honest when applying for things like life insurance, an industry expert has said.Kieran Platt, an independent financial adviser (IFA) and director of Life Direct, explained that life insurance policies are "underwritten at outset". This means that a person can decide to undertake new and potentially dangerous activities after the policy has been started without risking a payout.
However, it also means that there is an obligation on the consumer to "be totally honest" when applying for the policy in the first instance.
"The insurance company won't pay your claim if they find out you lied to them when you filled the form in," Mr Platt explained.
"People have got to be totally honest when they fill their applications in."
He continued to explain that this made life insurance policies "the complete opposite of income protection insurance", adding that, with these policies, "you have to go back to the insurance company anytime anything changes".
A recent survey from Bright Grey found that around one in three families in the UK have no life insurance at all.
