Non_Disclosure Material Facts: Life Insurance
Published / Last Updated on 17/01/2008
Non-Disclosure of material facts that would affect your insurance application is five times higher for paper applications according to data analysed by AXA for protection products.
People are five times more likely for non-disclosure important medical and lifestyle information on paper applications than with tele-underwritten applications. Tele-underwriting reduces the need for additional evidence because the tele-underwriters collect in-depth medical information from the consumer, enabling 75 per cent of policies to be issued within five days.
Non-disclosure is a huge issue for the protection industry and is very worrying that in cases where non-disclosure isn’t picked up by providers, consumers may find they’re not covered when they come to claim.
Our view
Use online application systems and avoid making potentially costly non-dislosure of material facts errors that may affect any life insurance policy claim.
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