Insurance news
'Be honest with life insurance companies'
25 July, 2007
Customers with high-risk hobbies have been advised to be upfront about their leisure activities when applying for life insurance
Life Direct stated that if they are not honest about potentially hazardous lifestyle choices, they may invalidate any claims that are made.
However, company director Kieran Platt said this would only apply at the outset when the policy is being prepared and does not restrict people from enjoying high-risk activities later on.
He said: "If you don't partake in climbing or mountaineering when you apply for your policy, but then subsequently you do, then that's fine. But whatever the situation is when you apply for your policy, you must be totally honest then."
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Platt warned that if the insurance company found out that their customer had lied on their application form, they would be within their rights to not pay the claim.
According to a study by life insurance company Bright Grey, one in three UK families do not have any form of life insurance, critical illness or income protection cover.
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