Insurance companies are supposed to be there to cover the risks that normal life brings. The idea is a great one but what they have been doing little by little is creating those get out clauses that give them an excuse not to pay you.
With life insurance, you are asked to fill out medical details when you take out a Policy. They really are not interested in your welfare. What they are interested is risk factors. Dependent upon your health at the time you take out the policy, prices will vary and so will guarantees, though do be careful. There are loopholes that people do not realize when taking out a policy.
Do not be dishonest with your health details
If you think you will get cheaper cover by not telling an insurance company about an existing health issue, you may be cutting off your nose to spite your face. It doesn’t always work. If you die during the lifetime of that policy, and a check is made of your medical practitioner that proves that you were already suffering from an undeclared illness when you took out the policy, your loved ones get nothing, zero, zilch !
When taking out a life policy on my husband, we even mentioned that he was born with a hole in the heart, even though he had never suffered illness in his life. It seemed honest, and by goodness am I glad that we did. At 31 years old, his heart stopped, and had we not declared that infancy illness, we would not have had any insurance cover.
It’s the same when you take out health insurance. Many health insurance companies don’t want sick patients. Sounds silly doesn’t it, but it makes economical sense that if they have healthy customers, it costs them less in the long run. Here, people lie in order to get health insurance, and although there can be benefits, the long term disadvantages of dishonesty are that when the company finds out that you have already been diagnosed with an illness that you have not declared, they will not pay. It’s as simple as that. All the medicines and care that you need are not covered.
Getting the best you can
Thinking ahead gets you out of the worry of pre-existing illnesses. Having life insurances in place before illness strikes really is the way to go, and here financial planning that involves early cover really is beneficial, renewing the policy at expiry, and possibly avoiding being asked questions that you cannot answer truthfully without penalty.
It’s a fact that honesty does pay, and not telling experts about pre-existing illnesses gives them a good reason not to pay you. Even the smallest of illnesses that you have suffered should be declared or the Insurance company will do what it is good at and refute your claim.
Be wise, be honest, and protect your loved ones.