Refused Insurance: is honesty the best policy?

MPlant

Hello everyone.

Last year my partner and I had life insurance refused because we admitted to past (rather mild) drug use and I admitted to an unrelated overdose (paracetamols) that was not connected to a mental health issue.

Recently we contacted a IFA who has shopped around for us and we are currently waiting to hear back to find out whether we can get cover. The insurer seemed okay about the drug use and when I asked about the overdose it didn't seem to be a problem as it was not related to any mental health issues and I have never had mental health problems.

I have a related query...

Our home insurance (contents) has come up for renew. Last year it was taken out before our insurance was renewed. I decided to shop around and found a better deal elsewhere. But then they asked the dreaded questions: "have you ever had insurance cancelled or refused".

The last time I gave an honest answer it meant the refusal of life insurance and having to explain all of the above about drugs and my overdose (I wish I'd never admitted it because I now realise it wasn't worthy or serious enough to explain as it wasn't recorded anywhere).

So this time I said 'no' because I didn't want to explain all of the above and get into another pickle with having to try and explain anything.

What should I do:
- Call back the new insurer and own up to the refusal?
- Go ahead with the policy and not tell them hoping for the best?
- Renew with my previous insurer (though not the better deal as it doesn't cover my business use laptop away from home) as this happens automatically and they don't ask about insurance refusal.

I mean, is it really likely that if I put a claim in they would discover my dis-honesty and refuse to pay?

And if I was to be honest would this involve the refusal of insurance or an increased insurance quote because they would view us as some unstable nutters who are constantly shooting up and wrecking where we live?

All this for being so honest. Honesty is NOT the best policy because it doesn't get you a freaking policy. :mad:

Thanks in advance for any advise on this one.

dacouch

Your best bet would be to let the Home Insurers know you have had life insurance refused due to "Medical Reasons". This should be enough information for them and it would not normally cause a problem as it is not a related type of Insurance policy. Being declined life insurance for medical reasons should not mean you are more or less likely to make a claim on a home insurance policy so should not affect it.

dunstonh

All this for being so honest. Honesty is NOT the best policy because it doesn't get you a freaking policy. :mad:

Better than paying for premiums for years only to be refused in the event of a claim or, even worse, being prosecuted for fraud.

There is no point telling lies or being untruthful. At the time you need the insurance the most (at a claim) you are just giving the insurance company an excuse to refuse your claim.

MPlant

I agree that it pays to be honest, however I wish I'd never been so honest in our initial life insurance application.

I'll call the insurance company back and explain about the application being refused for medical reasons.

Thanks for your responses.

MPlant

An update: I called up and told them, they said it was not a problem. They were more bothered about whether a claim had ever being refused (fraud, etc). I got them to write me a letter to confirm the above.

Thanks for your advice everyone.