Climbing and Life Insurance

GreyPilgrim

Here's a question for you. I took out life insurance for myself and my wife a few years back and one of the questions asked "did I do any dangerous sports, such as rock climbing" to which I answered no.

Since then I've started climbing indoors so I called the company to inform them. I was told that since I answered the questions honestly and correctly at the time, they underwrote me based on my circumstances then. The fact that I have started climbing AFTER that means the policy is still valid, I am still insured, and there will be no change to my premiums.

When I told her I was surprised by that, she said it was the same principle as the health questions...I answered at the time that I didn't have a serious illness and my premiums were based on that. If I suddenly developed a serious illness tomorrow, they wouldn't be allowed to 'uninsure' me, or increase my premiums.

Does this sound...correct? I'm still not convinced that if I fall 20 metres and end up as jam on the floor they will pay up. I've asked them to confirm in writing of course.

GP

dunstonh

Applications are a snapshot of what your circumstances are and known changes will be. Things that occur after the policy is in force have no impact on price or cover.

That said, the important thing is that it isnt the application but the on risk date (commencement date) that matters. If something occurs or changes in the period between application and on risk then you must declare that.

There is the possibility that if the date is very quickly after an application, you could be accused of knowing something at point of application. If you have evidence to support you then its fine but a phone call to the insurer logging name and time to confirm that they have no problem with that should suffice.

GreyPilgrim

Cheers Dunston. The policy has been going for at least three years, and I've only really started climbing about three / four months ago.

There is a clear record of me registering for membership and a beginners course at the local centre, so I guess if there was any queries I could prove the fact it's a fairly new thing.

I should have checked all of this sooner, I know......(*slaps wrist*)

dunstonh

three years is no problem at all but keep the membership records etc on file just in case.

Andrew24620

Hi - I work for a well known protection provider involved in the new business/underwriting.

Dunstonh is spot on!

The only advice I'd add to what's been said is to be aware if you need more life assurance.

Sometimes it may suitable to cancel an existing policy and take out a brand new one for the total new amount. This might be beneficial if the length of time you need protection (the term) is reduced or you find a quote for a cheaper premium (it's a very competitive world out there!).

BUT! Be wary if certain factors have changed which means the provider may not be able to accept you at standard rates anymore. For example, if your health is not A1 / deterioated or you're now undertaking hazardous pastimes (eg rock climbing). You could be worse off and pay more thn if you'd "topped" up to the total cover needed.

Some policies also offer a guaranteed acceptance if more cover is needed e.g. when taking out a further amount on your mortgage or the birth of a child. Again, it's something to consider rather than cancelling and taking out a new plan.