Question about disclosure

[newhopeinhim]

I (35F) applied and was approved for a 30 year term $1m policy with premiums set at $104 per month. During the application process (medical exam, paperwork) I was totally upfront and honest. I disclosed that my father has a heart condition called Hypertrophic Cardiomyopathy, which can be genetic. I do not have signs of it, but between the time I submitted my application and the time that the insurance company sent me the approval and paperwork for signature, I had a routine screening at the cardiologist for the HCM. They did not find the HCM but did say that I have aortic valve regurgitation (leaky aortic valve) that requires no treatment but said that I should come back yearly for monitoring. Now that I go to sign the paperwork, it asks whether anything has changed since the time of the application.

A. Should I disclose this? I’m guessing I should.
B. How might the premiums change?
C. If I don’t disclose, would it be likely that they would find out and deny a payout or cancel the policy?

 

[frenchyriff]

@newhopeinhim Yes you should, that’s the reason the disclosure is sent out. Now it may not change the rate depending how much regurgitation is noted by your cardiologist in the records, but the insurance company may want to see those records and continue their underwriting.

I cannot speak to how it would change your rate because all underwriting manuals are different. It may slightly or not at all.

If you do not disclose this and die within the first few years of the policy, it will not pay out. Also, if you withhold the info, and the insurance company finds out after the policy is in force, they can rescind the policy due to material misrepresentation.

 

[newhopeinhim]

@frenchyriff I clicked yes something has changed, typed the explanation in the notes field and continued the signatures. We shall see what happens. Agree it’s not worth the risk. Also Undermines the feeling of security I would have in paying premiums and feeling like my family is protected

 

[frenchyriff]

@newhopeinhim Yep it’s honestly not worth it to withhold the info

 

[mrsamiemiller]

@newhopeinhim They might find out. Not worth the risk. Send the new info to your agent and see what the new rates are. That’s pretty cheap. I got my policy at 31 in 2001. No pre existing anything and non smoker-drinker and I’m at 185$ month

 

[futuredreamer]

@newhopeinhim Absolutely you should disclose this.

Otherwise its misrepresentation, and the insurance company suboxone MAY not have to honor your death benefit. Instead they would just refund your premiums to the beneficiary, which meant you wasted your time and money.

 

[louislundy]

@newhopeinhim Risks (worst case) of each:
1. Disclose: risk possible postpone or decline of coverage
2. Don’t disclose: you die during first two years, policy is investigated/contested, no payout to your benes

 

[elisha_buffet]

@louislundy Do they only investigate if you die during first two years?