Reply With QuoteI would say that you would only need to declare it if it was specifically for another life insurance and not for car, travel, home etc. This is purely a layman’s view.
An elderly family member was declined life insurance (little surprise really) However, does this now mean when they insure a car, holiday or home, for example, must they declare they have been declined 'insurance' previously? Thanks for any knowledgable advice.
I would say that you would only need to declare it if it was specifically for another life insurance and not for car, travel, home etc. This is purely a layman’s view.
Are you sure they were refused life insurance, not life assurance?
What do you think the difference is?Originally Posted by Kingstepper
One pays if death occurs in a specified period. One pays out on death.
So what is “term assurance”?
Thanks, just checked and it was actually life term assurance. Maybe that doesn’t make a difference to future declarations for insurance policies?
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Just to add, I used to design products in the insurance industry.
“Assurance” is only ever used in reference to mortality based risks.
But “insurance” is often used in reference both to mortality and non mortality based risks.
I believe (but am happy to be corrected) that the term “life insurance” to describe a fixed term mortality contract may be (or at least have originated as) an American usage.
Nevertheless in the industry, at least amongst people of my age, a fixed term mortality contract is most often called a “term assurance”.
Yes, this.
Not always but in the industry very often Assured has been associated with whole of life plans so an easy understanding would be To look at the both words . . . insurance - ‘in’ the event of death and ‘assured’ meaning it’s assured to happen as we all die. Confusing though as you can do life assurance for a term to!
As to the OP’s question - no you don’t have to declare this.
Ask for clarity of the scope of the question. Proceed in accordance with the answer.
The question; "have you ever had insurance cancelled, declined or refused" (or whatever exact wording is used) would not extend from a Life Insuance/Assurance proposal to a "General Insurance" product e.g. Motor, Household, Travel, PMI etc. However, the underlying cause for the Life policy declinature e.g. a medical condition *may* be "material" to one or more of the policies mentioned and if material would need to be disclosed.
Dig
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