When you are buying a Life Term Insurance Policy you must adhere to the following so as to keep the cover in place and so as not to invalidate any claim that may need to be made:
* As the policy holder you are responsible for paying the premium every month, quarter or year, depending on the frequency you choose when you apply
* You must answer all of the application questions truthfully or to the best of your knowledge.
* Inform the insurer should you move from your address to another country.
Under what circumstances could a claim be invalid?
* If you have completed the application form in complete honesty and not omitted any information then there should be no reason for a claim to be invalid.
* However if at the time of a claim the required documents and/or evidence are not provided then the insurer holds the right to withhold any monies payable.
* If any information comes to light that would have effected whether cover would have been offered in the first place or if this information at the time the policy was taken out, would have meant that different terms were offered to those that were accepted and put into force. This is known as non-disclosure and can often be medical information or conditions that were not mentioned at the proposal stage.
*If any claim has previously been made on the policy.
It is vital to check with the insurer before you commence a policy for any other factors that could invalidate a claim, for example suicide.
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