If you did not disclose your complete medical history, we can set your mind at ease.

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December 4, 2018

Dear Client,

In light of recent events with Momentum repudiating a claim on the fact that a client did not disclose his complete medical history, we thought it is prudent to set your mind at ease.

It is important to note the following:

  • You do not have to let your insurer know if your health changes after the policy was issued. Even if you are diagnosed with cancer the month after the policy was issued and you had no knowledge, it will pay out completely.
  • You do need to let us know if your occupation, income, smoker status or engagement in dangerous hobbies change. We will advise you if your insurance needs to be amended.
  • Momentum added a new benefit to all current and future policies that states that they will pay life cover claims of up to R 3 million if it is due to violent crime, irrespective of the medical information you supplied.
  • All insurers are very strict when it comes to disclosing your full medical history when you apply for cover.
  • If you withheld crucial information and get caught at claim stage, your insurer will reconstruct your policy as if they had complete information.
  • How does the reconstruction work?
    • the claim is completely ignored;
    • they pretend it is a new application; and
    • the insurer will see if the policy would have been issued with no loadings, with loadings, with exclusions or if they would have declined to give cover.
  • The cover will then pay out according to the reconstructed policy:
    • Loading – the insured life will receive a reduced payout, by the same percentage as the loading.
    • Exclusion – if the insured claimed due to the excluded condition, there will be no payment. For any other reason, full payment.
    • Cover declined – no cover.

If you are unsure if you are covered correctly, please contact us so that we can send you the original application along with your medical questions, so that you can be sure that there will be no questions.