Is this Policy valid?

rach29

Hi all,

I have been looking at our insurance policies to make sure we have got best value & whilst doing so something has come up I hope you guys can help me with.

My OH took out a Life & CI policy in May 2006 when we moved house. Before the policy started the Insurance Co sent through a medical questionnaire, but in the scrum of moving it was never completed & returned.

The Company have never chased us for this information but it seems to me that should a claim ever be made against this policy it would be invalid because the medical questionnaire was never completed (almost certainly for the Critical Illness element since the Insurance Co would surely claim that medical history had not been disclosed)

So what should we do now?

a) Cancel the policy & get a new one?

b) Call the insurance company & get a new questionnaire? (But this would then be medical history from now not then)

c) Something else ?

Any advice would be much appreciated

*MF*

The one thing you must avoid at all costs imho - is to find you have a valid claim to make and it is only then that you find out the claim is valid but the policy isn't.

I find it strange that they did not chase you up about the questionnaire - so is it just possible the policy is fully in force - at their choice/by default - without the questionnaire - there is only one way to find out - ask them.

If they deem it is not valid/in force (or an element of it) - then I would guess you are entitled to a return of all the premiums you have paid for that cover to date.

You mention "current" medical history - is that a problem if you had to start again - I don't think it alters what I have said, but it may influence what you do next.

Hope this helps ...

rach29

Hi there, Thanks for your speedy reply.

Your thoughts concur with what I had been thinking. Either the policy is in force & valid without the medical questionnaire in which case I was thinking of asking the Insurance Co to confirm that in writing, Or the policy isn't valid and we should therefore have our premiums returned.

Either way, as you point out we don't want to be in a position to claim & then find out it's not valid :eek:

Current medical history isn't a huge problem, however OH is a smoker & is 2 years older than when we started. Also he has had some investigations into a breast lump (which has now disappeared) and this was concluded to be "nothing to worry about" but he is to revisit the consultant in a month's time to conclude the matter.

*MF*

Hi ... getting the question on validity answered - in writing - was in my mind before I posted, and lol, disappeared when I posted. It's crucial.

If it remains valid, then the OH position is not affected. If it isn't valid, then I guess you wait until after the consultant has given him the all clear, and start again.

Hope it all works out for you!

Oscar_The_Grouch

Hi there

I seem to be following MF around today shouting "I agree" all the time, but this is another instance of the same.

The only thing I would add is that with life assurance, the requirement for declaring material information takes place at policy inception; if you only became aware of the current medical conditions after the policy was taken out, you may not have to declare them and the insurer would be wrong to take them into account. Before you speak to the insurers, I strongly suggest you get all the dates of everything sorted out.

Again, MF is correct and you do need to speak to them regardless, as you don't want to get to the point of claim only to find out that the cover is invalid. Ask them to confirm what period they want you to give information up to and possibly use the little white lie of "we lost the form in the house move, but are pretty sure we did not send it to you. Can you send us another questionnaire and confirm in a covering letter what periods we need to give you information from and to"

Best of luck.

*MF*

Oscar_The_Grouch wrote: »

Hi there

I seem to be following MF around today shouting "I agree" all the time, but this is another instance of the same. <snip>.

I agree

Good to have your company OTG - and hey, I am an old hand, so you'll probably keep me right when I get out of date, lol.

gfm198

My scenario is I have a partner (therefore unmarried!) and we have a two year old daughter.

My complication is the family home is in my name as well as the mortgage. Value £225k, mortgage outstanding £45k. I also have a buy to let property value £180k, mortgage £70k, again ownership and mortgage in my sole name. I have savings of £40k. As you can work out I'm about on the limit for IHT.

A recent complication is both me and my partner have just taken out single life assurance of £300k each. We intend to put this in trust. If she dies it's straight forward the money goes to me. However, confusion rains if I put mine into trust to my partner. What happens about the mortgages and therefore the family home and buy to let properties? Obviously both properties are left to my partner in my will.

Any advice would be greatly appreciated.

*MF*

^ Note:

gfm198's post has also appeared and been answered by jonnyb here - post 9

http://forums.moneysavingexpert.com/showthread.html?p=11230791#post11230791