health change during underwriting

[stevej1]

Regarding term life insurance in NJ, if a health change occurs between the time the information went to underwriting and the time that the policy is presented to the prospective insurred, does such a health change need to be reported to the insurance agent at the time of payment for the contract?

How is it handled in the event that the prospective insured is not aware of the health change until after the policy is paid for, such as a diagnosis of a heart condition that was likely present before payment but only comes to light after the payment was accepted?

To what degree is the prospective insurred responsible for actively seeking a diagnosis for a condition that only they suspect before payment. For example, let's say that the prospective insurred recently noticed a strange patch of color on their skin and fear skin cancer during underwriting but before payment for the contract. Underwriting is almost done and the prospective insurred is willing to wait a few days before seeking treatment.

 

[somarco]

Breezing through and ran across this, so it may be a moot point by now.

Some carriers have delivery requirements that include a statement by the insured indicating there has been no significant change in their health since the date of the application.

At one time CWA (cash with application) conditional receipts were issued where coverage began the day of the application, regardless of when it was approved by underwriting.

Those days are gone.

To really answer your question, one needs to look at the policy language including the receipt given at time of application. There are probably also disclaimers in some of the paper work you signed.

Having a look at all of this will give more insight than just taking a wag.

Most (all?) policies have a 2 year contestable period whereby coverage can be rescinded or a claim denied if there is a material misrepresentation of your health. They also usually include language alluding to something a "prudent" person would do . . . such as see a doc if you had chest pains that dont go away.

Bottom line is, if a claim is made within the 2 year period and cause of death indicates something COULD have been known but not disclosed, someone will have a time fighting the carrier over payment of the proceeds.

If the condition is something that really concerns you, make application to another carrier for a similar plan and see what happens.