Life assurance - what is actually covered

pardal51

Hi all,

I am a FTB buying a property and will be taking a life assurance policy with OH (detah + critical illness).

How do I find out whether the policy covers for activities such as skydiving, bungeejump, leisure flying, etc?

At the moment I do not undertake any of the above activities but have a feeling that will start pretty soon :cool:

Help is appreciated

forgotmyname

Flying a single seater plane with the intention of doing a bungee jump at 20,000 feet, And then free falling without a parachute will be excluded from most policies.

Ask for the policy schedule and terms and conditions, Before buying?

magpiecottage

forgotmyname wrote: »

Ask for the policy schedule and terms and conditions, Before buying?

That won't tell you anything because a life and critical illness policy will be individually underwritten.

If you take part in a hazardous pursuit (for professional or recreational reasons) or intend to do so, then you will need to disclose it to the insurance company when you apply for the policy, along with anything else they might reasonable need to know in order to assess you, whether they ask for it or not. (Unless they specifically say they do not need to know).

Provided the information remains accurate up to the point at which the policy goes into force they will cover you even if you later change your mind.

The only other point to make is that the insurance company can avoid paying a claim if there is a change before the policy starts. For example, it may send you an "acceptance" letter confirming the basis of cover. If told them on Friday that you wanted it to start on Monday then fell ill on Sunday with something you knew nothing about before they may not cover you. If you told them to start it on Saturday then they would.

dunstonh

Life assurance companies have a hazardous pursuits supplementary question list when you give details of past, current and proposed activities. However, if this is a just a distant pipedream then you dont declare it. It really depends on how soon is soon and how intentioned you are.

pardal51

dunstonh wrote: »

Life assurance companies have a hazardous pursuits supplementary question list when you give details of past, current and proposed activities. However, if this is a just a distant pipedream then you dont declare it. It really depends on how soon is soon and how intentioned you are.

I hope to start these activities within 2 or 3 years....

dunstonh

As it is a known intention then you need to declare it.

kingstreet

Hazardous pursuits will also cause problems with the total permanent disability benefit which is included with the critical illness cover.

weighty1_2

dunstonh wrote: »

As it is a known intention then you need to declare it.

There is at least one provider (off the top of my head) who ask "do you, or do you intend to, within the next six months undertake any of the following...." in relation to hazardous pursuits.

I think that if the intention is to start within 2-3 years then almost all providers would let it go through as it simply isn't definite enough.

dunstonh

I believe it wouldnt lead to an issue like you. Although personally I would still disclose it just to avoid any comeback later on. I generally work on the basis that if in doubt, declare it and let the insurer decide. You can't go wrong then.