Consumers 'must tell the truth' when applying for life insurance

Life insurance policies could be put in jeopardy if consumers fail to be "totally honest" when applying for the product, it has been warned.

Kieran Platt, an independent financial advisor who also co-founded life insurance website Life Direct, has urged consumers to be truthful when giving information about their lifestyle - especially regarding dangerous hobbies.

He warned that insurance companies are not obliged to award compensation should it be discovered that an applicant lied prior to an insurance policy being underwritten.

"All life insurance policies are underwritten at outset. So if you don’t partake in, say, climbing or mountaineering when you apply for your policy, but then subsequently you do, then that’s fine, nothing wrong with that," Mr Platt commented.

"But whatever the situation is when you apply for your policy, you must be totally honest, otherwise you may invalidate your claim.

"The insurance company won’t pay your claim if they found out you lied to them when you filled the form in. People have got to be totally honest when they fill their applications in."

Recent research conducted by Bright Grey found that one in three families in the UK has not taken out any life insurance, critical illness or income protection cover at all.