Scottish widow life insurance?

Kasha

I took out life insurance policy four years ago it is a fixed term to 2014. I pay £34.50 per month for a £100.000 return on my death (It also pays out on terminal illness) I saw a documentary about scottish widow recently where they would not pay out to a woman who had cancer because she had had two episodes of post natal depression years ago.
When I took out my policy I thought I had told them about all my relevent medical history, I gave them permission to look at all my medical records and I had a medical by one of their doctors. After watching that documentary I am not sure what to do now because I have had two episodes of depression after traumatic events (the last being approx15yrs ago) where I took anti depressants for 2/3 months. I did not disclose this, I didnt think it was relevant and they had full access to my medical records.
I am worrid now that if I die they will use this to just not pay out?

What do you think I should do? I'm a little worrid about the bad press scottish widow was given anyway and I'm wondering wether to just cut my losses? I would be grateful for any advice/opinions

dunstonh

I saw a documentary about scottish widow recently where they would not pay out to a woman who had cancer because she had had two episodes of post natal depression years ago.

Which needs to be noted that she hadnt declared that information to them. That was the problem. In the coldest terms, she had attempted to defraud the life assurer.

After watching that documentary I am not sure what to do now because I have had two episodes of depression after traumatic events (the last being approx15yrs ago) where I took anti depressants for 2/3 months. I did not disclose this, I didnt think it was relevant and they had full access to my medical records.

The insurers only write to the doctor if they need to clarify any of the points you disclose. If you dont disclose information, then they dont ask.

I am worrid now that if I die they will use this to just not pay out?

There is a very good chance of that happening. Although there are other scenarios as well that could occur.

I'm a little worrid about the bad press scottish widow was given anyway

Its strange that you say Scottish widows are getting the bad press yet it was the woman that was trying to defraud them.

What do you think I should do?

Disclose the information to them so they can redraw the policy. Alternatively, apply for new life assurance and disclose everything that you should have done.

Kasha

Thanks for your reply...when I said Scottish widow were getting the bad press..........This woman was not the only person that they were not paying out, there were a few cases that obviously the ITV felt were unfair because they took the trouble to make a 30 minute documentary on the subject.

I dont think for one minute this woman was trying to defraud them after all why would she or I think that two short episodes of post natal depression would effect a critical illness claim for Breast cancer?

I just didnt think my episodes would have to be declared, not relevant to what I may die of. Does this mean I have to declare Having my tonsils out when I was 21yrs? or having a c- section with my baby where does it end?

It would be simpler if they DID check medical records...then they would have NO cop out.

I take on board what you have said and I know it is the insurance "law"

Wutang_2

Kasha wrote: »

Thanks for your reply...when I said Scottish widow were getting the bad press..........This woman was not the only person that they were not paying out, there were a few cases that obviously the ITV felt were unfair because they took the trouble to make a 30 minute documentary on the subject.

I dont think for one minute this woman was trying to defraud them after all why would she or I think that two short episodes of post natal depression would effect a critical illness claim for Breast cancer?

I just didnt think my episodes would have to be declared, not relevant to what I may die of. Does this mean I have to declare Having my tonsils out when I was 21yrs? or having a c- section with my baby where does it end?

It would be simpler if they DID check medical records...then they would have NO cop out.

I take on board what you have said and I know it is the insurance "law"

In the same programme, it was also stated that millions still gets paid out for those who have disclosed all information.

Its really quite a simple notion

dunstonh

Thanks for your reply...when I said Scottish widow were getting the bad press..........This woman was not the only person that they were not paying out, there were a few cases that obviously the ITV felt were unfair because they took the trouble to make a 30 minute documentary on the subject.

Refusals for non-disclosure account for around 5% of all claims. So, there are a few cases. About 5 in 100. However, there is no reason for there to be any if people just told the truth.

I dont think for one minute this woman was trying to defraud them after all why would she or I think that two short episodes of post natal depression would effect a critical illness claim for Breast cancer?

Because its a question that is asked in the application that she lied about her response. The FOS have guidelines on what happens with non-disclosure and inadvertent non disclosure on a unrelated health issue would see them pay out if they would have accepted terms from the start minus any additional cost. If they would have refused terms from the start then the insurer is in a stronger position.

I just didnt think my episodes would have to be declared

So, you made the decision to ignore the questions and answer them without providing the correct answer. It isnt your choice to make. If the question is asked, then you answer it fully.

Does this mean I have to declare Having my tonsils out when I was 21yrs?

No. Because the questions are structured in such as way that you do not have to disclose that.

or having a c- section with my baby where does it end?

Emergency C-section may have to be disclosed and where it ends is with telling the truth.

It would be simpler if they DID check medical records...then they would have NO cop out.

And premiums would be a lot higher now due to the costs involved in doing so.

If you answer the questions as they are asked then you will have no problems. If you have any doubts if something should be disclosed or not then you disclose it. Let the insurer decide if its applicable or not. Its not for you to decide. The questions though are structured asking "if you have ever suffered from xyz" or "if in the last 5 years have you suffered from..." or variations of that theme.

So, if it says (copied & pasted from SW application):
Have you ever suffered from mental illness, anxiety,
depression, nervous breakdown, stress, eating disorder,
chronic fatigue or tiredness?

That is fairly clear. If you have ever suffered from any of those specific things they you disclose it.

Kasha

Thanks very much for taking the time to reply, as you sugested I will write to scottish widow and let them know about the things I didnt mention and take it from there.

OshayAway

Kasha wrote: »

I will write to scottish widow and let them know about the things I didnt mention and take it from there.

Good idea. If that results in them rating (increasing) your premium, I would suggest you seek advice from a good IFA / broker as this is an area that insurers do vary on. In fact some word the medical question regarding anxiety / stress / depression to only ask about the last 5 years. In which case, you would not need to mention any symptoms if your last was 15 years ago.

However, if your current insurer does offer special rates / terms, you will need to disclose this fact to every other application you make in future as insurers always include a question to cover that along with the reason why. As a result, you could be disciminated againt as you would not have had to disclose it otherwise.