Do I need to keep my Life Insurance informed of my ongoing health?

steveyme

Hi people! Hoping for some advice;
Once I get life insurance to cover my mortgage, do I need to keep them updated on my health? For instance, I am getting a good monthly quote right now, which I would like to take up. But what if in 5 years I have a heart attack or stroke? Are my payments locked in to my monthly quoted figure or will they begin to push it higher and higher - effectively squeezing me out of being covered? Also, might the figure go higher and higher each year as I get older - indeed is that expected? Thanks, Steve

Weighty1

The premiums can increase if you choose inflation linked cover OR if you choose a reviewable premium but typically for life insurance which has either a fixed level or decreasing payout (the type which covers a repayment mortgage) the premiums are normally guaranteed for the full term.

Once the cover is in place they cannot review your health as it would penalise everyone who ever had a medical condition diagnosed.

Aretnap

No obligation to inform them of changes to your health, you just need to answer the questions about your health accurately at the time you take out the policy. As you surmise, if they could cancel your cover, or raise your premium to unaffordable levels, as soon as it looked like you might pop your clogs, the would be no point having the policy. So instead they ask you some questions about your health and price you on the risk of you dying in the next 25 (or whatever) years. That includes the risk of your health deteriorating gradually over the 25 years as well as the risk of you being stuck down suddenly by a bolt of lightning or a heart attack.

Some policies do come with reviewabe premiums. By and large these mean that the insurer can raise your premium in response to changes in the market as a whole (eg if people in general start dying younger than they expected 25 years ago) but not in response to changes in your health as an individual.

System

I can see that it's reasonable that unavoidable changes to your health don't affect your premium, but does that still apply to voluntary increases in risk?


What about dangerous occupation or activities?
Smoking?
Over-eating/obesity?

steveyme

Thank you so much everybody - this has been extremely useful and I am now much happier about arrangements :-)

dunstonh

Clifford_Pope wrote: »

I can see that it's reasonable that unavoidable changes to your health don't affect your premium, but does that still apply to voluntary increases in risk?


What about dangerous occupation or activities?
Smoking?
Over-eating/obesity?

Applications are a snapshot at the time of applying covering current and known future events.

if say 10 years after you decide to take on a high-risk occupation, become obese or start smoking, it doesn't matter.