critical illness life cover on repayment mortgage

bundance

If someone was hospitalised for mental health reasons and did not inform their insurance company, what is the worst that can happen.
The illness is not on the critical list, and they do not plan to make a claim.

thank you

Mrs_Bumble

Usually there is a question on the application forms for critical illness that asks specifically if there has been any treatment for mental health reasons and if the truth hasn't been told and is discovered at point of claim this can invalidate the whole policy.

So do you know if this question was present on the application form and was answered untruthfully?

bundance

Mrs_Bumble wrote: »

Usually there is a question on the application forms for critical illness that asks specifically if there has been any treatment for mental health reasons and if the truth hasn't been told and is discovered at point of claim this can invalidate the whole policy.

So do you know if this question was present on the application form and was answered untruthfully?

At the time of application there was no mental illness, but it happened during the course of the term.

What do you mean by invalidate the whole policy?
There will be no claim made.
Is this relevant, and what is the worst that could happen please

Mrs_Bumble

If the mental illness has happened after the application was submitted then there is no problem,

If the mental illness had happened prior to application and the applicant lied on the form it could invalidate the claim for anything claimed for as would be classed as non disclosure.

So if the facts are that the mental illness happened after the policy was on risk then it has no relevance, as when underwritten the provider had all relevant facts.

bundance

So, can they keep their premiums as they are, in the knowledge that they may not pay if they make a claim.

Yeah, the illness happened a few years after the policey started.
I think the applicant is more worried about fraud, but if they are not making a claim, then they can still pay the same premiums.
Is that right, sorry for all the questions, asking for someone not online, and i am clueless.

please confirm thank you

doelani

I could have written this query myself as was thinking same tonight.

I took out policy in 2003, I spent a period in hospital with mental health problems in 2006. I am also wondering if policy still valid??

Again would not be claiming under critical illness but if I was to die woudl they still pay out as they were not informed of illness? It was after policy taken

Mrs_Bumble

The key is this! At the time of application the applicant divulged all material facts at the time! The policy is underwritten based on this information. Any illness or condition that occurs subsequently is not relevant.

As long as the material facts at the time the policy was underwritten were correct then the person has nothing to worry about.

Non discloslure is not giving relevant information at the time of application.

Does this help?

bundance

It helps my question, thank you very much.

doelani

Mrs_Bumble wrote: »

Does this help?

thanks a lot