Poor insurance applications ‘could damage debt management’
Consumers could see their debt management efforts hampered by high insurance premiums if their applications are inaccurate, it has been warned.
Critical illness insurance is a form of payment protection, with Legal & General offering a lump sum or monthly amount to clients upon the diagnosis of one of 35 listed illnesses.
While such protection may prevent debt from developing during unexpected periods of sickness, the firm advises that a poorly-completed application form could see premiums artificially inflated.
Joe Wiggins, protection and housing PR manager for Legal and General, explains: “I would call this inadvertent non-disclosure and it does happen.
“However, it is unlikely that a customer would over-estimate their weight or alcohol intake for example, to such an extent that they would be paying higher premiums.”
Individuals who find their protection products are costing more than expected could stand to benefit from debt management advice.
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