Telling little white lies on your life insurance policy simply won't wash. Getting your life insurance policy right from the outset can minimise the risk of heart ache for your loved ones later. It's a truth nobody likes to face up to, but accidents and death happen; illness can strike at any age. But the fact that people will do extreme things for money means the life insurance industry has to be wary. The fact John Darwin's life insurance paid out, despite getting caught out later, shows that insurers can end up being dragged into illegal scams and faked deaths. But for many in truly tragic circumstances, life insurance can be crucial.

Income Protection: Life Insurance

Life insurance can safeguard you with critical illness cover - if you contract a fatal cancer or illness, you'll know you, or your loved ones, won't have to worry about money. But there have been high profile stories in the press outlining tragic incidents where life insurance companies didn't pay out. A typical tragic story is that of a man who lost his wife in a car accident, the driver going the wrong way down an A road. It should be a clear cut case, but the life insurance industry is a defensive one. The man was left struggling to care for their baby and his grief, and yet his life insurance company initially refused to pay the £200,000 sum. The confusion lay around his wife's medical records which stated she smoked, her life insurance policy said she didn't. The life insurance company eventually paid half the sum.

Income Protection: Honesty is the Best Policy

Being honest when it comes to taking out life insurance is crucial. Smoking is a tricky area - you either do or don't smoke, but any smoker will tell you, you can quit but soon give in to the urges and start again. You may have the best intentions, but being truthful on your life insurance to your vices is clearly crucial. If you are taking out a life insurance policy, it can literally save you from financial ruin if you do lose a partner or relative who you depend on financially. But it's crucial you look at your life insurance policy carefully to check you are aware of what it covers and that you are aware of the information you need to honestly provide; deliberately downplaying how much you smoke, drink or weigh to try and achieve a cheaper premium can end up costing you dearly when it comes to life insurance. And income protection life insurance can be jeopardized if you make an honest mistake or omission about a health problem or surgical procedure; something that might seem minor to you, your life insurance company could take issue with. There have a few tragic stories in the press such as a woman he was refused life insurance after being left unable to work after a heart attack aged 36 - the fact she didn't declare her depression suffered within two years of taking out life insurance invalidated her contract.

So if you are taking out life insurance, or you have life insurance, make sure your contract is honest, up-to-date and that you are aware of what it covers and what it doesn't.

Looking for Life Insurance? Speak to The Insurance Service

The Insurance Service's ethos is that it strives to provide fair health insurance policies in an industry dominated by a small number of major providers and decided to give more choice to those seeking health insurance policies. To find out more about the health insurance and income protection policies available from The Insurance Service, just call 0845 053 3404 or fill in the online enquiry form.

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