Consumers 'misleading' insurance providers
In a bid to secure cheap insurance premiums, Britons are leaving out important information from their applications, new research suggests.
According to a survey by AXA, one in 14 people has knowingly misled their insurer when requesting quotes for life insurance and other forms of cover.Information commonly embellished or not disclosed includes lifestyle habits and previous medical conditions, even though they may have an impact on protection levels.
The research shows that 11 per cent of women have lied about their weight, while 25 per cent of men have understated their alcohol intake.
Almost one in ten people has failed to disclose the truth about their smoking habits and one in 30 has left out details of minor back problems.
Iain Mallon, head of protection at AXA, warned: "Quite simply, if your insurer finds out you have deliberately not disclosed relevant information, they may not be obliged to pay out the full amount."
Research from Legal and General shows that 65 per cent of people overestimate the cost of life insurance. They could find they can secure cheaper premiums if they compare life insurance online.
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