Understanding the Duty of Disclosure when applying for insurance
Every time you apply for insurance, there's a legal Duty of Disclosure to make a full and honest disclosure to an insurance company. This video will tell you more about what you need to do while you are applying for insurance cover.
00:00 - 01:13
We all know honesty is the best policy, and that's especially true when it comes to life insurance.
Duty of Disclosure means that you have the responsibility to report any personal information that might be relevant to your cover, to the insurer.
Now we're not talking about last year's stubbed toe, or the sniffle you had in 1994. The insurer needs to know about any illnesses you've been diagnosed with any injuries you've suffered or any health issues you currently experiencing.
You also need to tell them about your family health history, any work situations that involve a degree of risk or any hobbies that could be hazardous.
Duty of Disclosure begins when you fill out the application form and continues until your application is accepted.
If your circumstances change before your policy is approved you must notify the insurer.
If you don't disclose all relevant information accurately and truthfully, a future claim may not be paid, or your insurance policy may be canceled.
If you're not sure ask your Financial Advisor and remember when it comes to your insurance application and your Duty of Disclosure, honesty really is the best policy. Brought to you by sapience.com.au