Legal and General, one of the foremost UK insurance companies, have further re-iterated the need to be upfront, and the dangers of non-disclosure, when applying for a life insurance policy. The insurance firm indicate that millions of policyholders are getting less from their critical illness insurance due to non-disclosure.
The insurance firm was clear that despite application form warnings about disclosure, many people still held out on relevant details. In doing so, L&G warned, they could be leaving themselves wide open for an invalidated claim.
Legal &General reportedly commented: "We paid over £92 million in critical illness claims (83.3 per cent) in 2006. Of the declined claims, 12.2 per cent were for non-disclosure. We welcome any move by a life insurer to improve customer confidence in critical illness cover. However, what many people may not realise is that, under certain circumstances, the industry already pays claims where there is non-disclosure that had no effect on the application terms."







