I purchased a term insurance policy from SBI Insurance two years ago. At that time, I had to undergo a medical test but I with didn't disclose that I was an occasional smoker and drinker.I had also stated that my parents are in good heath, though my mother had diabetes and high BP, but both in check. If any claims arise in the future, say 15-20 years down the line, can the insurance company reject the claim saying that I withheld information?
Life insurance policies follow the principle of good faith, that is, the insured must disclose all facts material enough for the issuance of a policy. In case the insured hides a fact, which is material to the assumption of risk by the insurers and it comes to light at a latter date, insurance company can cancel the policy or reject the claim depending on the circumstances. So, it is advisable to disclose all possible facts at the time of taking the policy and answer the questionnaire with complete honesty to avoid hassles at a future date.
Also, it is important to understand that you have taken a term insurance in which medical tests are conducted to check your fitness level and rule out the existence of any disease at the time of issuance of the policy.
Your current health status and family medical history has the impact of changing your premium amount but would not make you ineligible for life insurance. So, in your own interest, it is advisable that you disclose all facts to your insurance company.
Life insurance policies follow the principle of good faith, that is, the insured must disclose all facts material enough for the issuance of a policy. In case the insured hides a fact, which is material to the assumption of risk by the insurers and it comes to light at a latter date, insurance company can cancel the policy or reject the claim depending on the circumstances. So, it is advisable to disclose all possible facts at the time of taking the policy and answer the questionnaire with complete honesty to avoid hassles at a future date.
Also, it is important to understand that you have taken a term insurance in which medical tests are conducted to check your fitness level and rule out the existence of any disease at the time of issuance of the policy.
Your current health status and family medical history has the impact of changing your premium amount but would not make you ineligible for life insurance. So, in your own interest, it is advisable that you disclose all facts to your insurance company.
