Tell the whole truth if you want cover

PEOPLE are in danger of seeing claims on their life insurance policies turned down because they do not reveal all their medical facts, according to Norwich Union.

The insurer said the most common cause of a fraught claim is non-disclosure relating to multiple sclerosis, anxiety and depression. Not admitting to smoking is also high on the list. The company's chief underwriter, Tony Jupp, said people need to know from the outset the potential consequences of not disclosing details at the proposal stage.

"When it comes to applying for life assurance, people's ability to tell the whole truth can be compromised by a mixture of embarrassment, not wanting to face the facts of an illness and trying to read their own meanings into what the insurer wants to know," he said.

In the case of those who claim for multiple sclerosis, Jupp said some fail to disclose neurological symptoms from earlier in their lives which would have had some bearing on the underwriting decision.

Anxiety and depression can carry such a stigma that people may be uncomfortable discussing them, while smokers who fail to disclose their habit - perhaps fearing a higher premium - didn't seem to appreciate the problems this would cause them and their family if they made a claim.

"Life assurance is too important for people and their families to jeopardise receiving its full benefits," said Jupp. "This is why full disclosure is absolutely essential."