Five ways you may invalidate your life insurance

1. Failing to disclose information

When applying for life insurance, it’s essential to be completely honest about your health, lifestyle, and any pre-existing medical conditions.

Failing to disclose relevant information, such as smoking habits or a chronic illness, can lead to your policy being voided.

Insurers rely on this information to assess risk, and any discrepancies discovered after your death could result in a denied claim.

If you don’t know the answer to a question, be honest. It’s better to get back to them later with the correct information rather than give them the wrong information.

2. Having a high-risk hobby

Many life insurance policies have exclusions for high-risk activities like skydiving, scuba diving, horse riding or extreme sports.

If you participate in such activities without informing your insurer, and your death is a result of one of these activities, your policy may not pay out.

Always check your policy’s terms and notify your insurer if you take up any hazardous hobbies such as scuba diving, paragliding, rock climbing and mountain biking.

Not sure what the difference is between an activity and a hobby?

For life insurers, the distinction lies in the regularity and risk associated with the activity. Regular, high-risk activities are more likely to be classified as hobbies and can impact your life insurance policy.

3. Causes of death excluded by the policy

Certain causes of death may be excluded from coverage, depending on your policy.

For example, deaths resulting from criminal activities, misuse of drugs or alcohol, reckless activity or suicide (within a specified period) might not be covered.

It’s crucial to understand these exclusions when you take out your policy to ensure your beneficiaries are aware of any potential limitations.

4. Relocating outside the UK

If you’re planning to move abroad, it’s worth looking at your policy documents. Some insurers only offer cover to people who are a permanent resident in the UK. So, if you passed away while living outside the country, it could invalidate your policy.

Always review your policy’s terms regarding residency and notify your insurer of any changes in your living situation to maintain coverage.

5. Having a dangerous occupation

Insurers charge higher premiums for high-risk occupations to offset the increased likelihood of a claim. For example, firefighters, construction workers, fishermen, HGV/coach drivers and even a full-time bar staff in a public house will often face higher premiums due to the dangerous nature of their work.

While personal safety can sometimes feel subjective, as far as a life insurance provider is concerned, there are risk factors associated with certain professions that increase the likelihood of an unforeseen death.

To balance the greater risk of a payout, the insurer would charge higher premiums.

Always update your insurer about any significant changes in your occupation. This ensures your policy remains valid and you are adequately covered.

If you’re unsure about how a job change might affect your policy, consult with your insurance provider or a financial advisor.