People who apply for life or critical illness insurance often make light of any health or lifestyle problems to keep the premiums down. One of the UK's largest life insurance companies tells us it can't always quite believe what they're reading on some of the policy applications they receive. This is to such an extent that they're inviting their customers to "tell the truth and shame the devil" regarding their health and lifestyles, in advance of any claims which may possibly be refused when the truth is out.



The insurer is inviting policy holders to re-think the relevant details on the application forms which they filled in regarding life insurance, including critical illness cover. This will be a chance to correct any little discrepancies and ensure that the insurers are not misled. Not all clients will be contacted, just around 5,000 taken at random, but it's expected that the offer will be extended to many more people.

Common assertions are that clients are non-smokers. None at all is what the insurers mean, not practically none - or at least less than they used to get through. Drinking is another one. You don't drink, do you? Just the odd glass of wine with meals - after an aperitif maybe or followed by a nightcap. Drinking amnesia!

Of course you take exercise. Doesn't everyone? The walk from the house to the car is just that – a walk. It's a possibility that, depending on the information give, some people could face a rise in their premiums, or even cancellation of their policies.

It's quite surprising how much time and money is spent on checking claims, to the extent of hiring personnel to investigate claimants. Someone who is making a claim for extreme distress and disability due to a back injury, for instance, can't possibly be filmed playing football. Or can they? Approximately one out of five claims is rejected after investigation.

One of the problems is that, particularly with critical illness cover, the application form is extremely complicated and lots of the questions are open ended. This makes it difficult for customers to be certain of what information is needed and leaves room for doubt. This concerns the consumer group "Which?" and they are worried that unfair rejections on claims are happening due to misunderstandings. A spokesman said "It sounds extreme yet failing to tell your insurer about a visit to the doctor about a headache a few years earlier could invalidate a claim if the insurer decides this is relevant".

Commonly, around 12 per cent of critical illness claims and 1 per cent of life insurance ones are rejected. The consequences of rejection for life insurance could be devastating for your dependents at a time when they are least able to cope emotionally, without added monetary worries.

The insurer is offering to clearly advise customers who may have missed something from their application form of what actual information is needed. This may make many people think again. Insurance is supposed to offer peace of mind - it's what it's there for. Get it right and then you can be sure that everything's OK.