Monday, August 20, 2012

The importance of Health Declaration

If you have a pre-existing condition, please make sure that the agent clearly writes it into the proposal form during inception. 

If the agent fails to declare this in the proposal form and should there be any claims arises due to the medical condition that was not disclosed, the insurer may not be liable to pay for the claim as it falls under non-disclosure clause of pre-existing illness

If you have declared it, when you received the policy document, please check and verify that the health condition is being properly declared in the proposal form. The proposal form is normally attached to the policy document.

The outcome of the declaration would help the underwriters to view the case as 1. Accepted but with an exclusion for the health condition, or  2. Accepted as it is (no exclusion) or 3. Reject the application.

Even if it is being rejected, please do not be dismay as it is good to know now rather than having not to disclose, get the case approved and later after years of paying the premium gets the claim rejected because the insurer found out about the pre-existing illness.