Claim Denied? The Hidden Risks of Not Disclosing Your Medical History
Your insurance claim can be rejected if you don’t fully disclose your medical history. Learn how the incontestability period works and how to protect your coverage.
A Familiar Story…
You finally decide to buy an insurance policy. You’re healthy, nothing major to worry about. Sure, you’ve done a few health check-ups before, like urine and blood tests when you had a fever but your agent assures you:
“That’s not important. You don’t need to disclose it.”
You trust the advice, sign the forms, and your policy goes into force.
Fast forward one year. Suddenly, you experience severe leg pain and end up in the hospital. You think to yourself: “Good thing I have insurance. I’ll be covered.”
But instead of paying your claim, the insurance company investigates. Days later, you receive shocking news:
❌ Claim denied. Policy terminated.
Their reason? Your past medical records showed blood in your urine and slightly high blood sugar levels.
You’re furious. You confront your agent:
“Why did you say I didn’t have to disclose this?”
You challenge the insurance company:
“What do blood in my urine and prediabetes have to do with my leg pain?”
But the answer doesn’t change. They won’t pay you a cent. To make matters worse, instead of refunding all your premiums, they only return the cash value...a fraction of what you’ve paid.
At that moment, you’re left with a bitter thought:
👉 “Are insurance companies and agents just legal scammers?”
This story isn’t rare. Many people have faced the same painful truth, all because of non-disclosure of medical history.
What Is Non-Disclosure in Insurance?
Non-disclosure happens when an applicant fails to reveal important medical information, whether intentionally or accidentally, when applying for insurance.
Insurance contracts are based on the principle of utmost good faith, which means both the policyholder and the insurer must be fully honest and transparent.
If you don’t disclose relevant details:
Your claim can be denied,
Your policy can be canceled,
You may only receive a cash value refund, not your total premiums.
And importantly, insurance companies don’t need to prove the undisclosed condition is directly related to your claim. The fact that you withheld it is enough to void your coverage.
Understanding the Incontestability Period
Most insurance policies have an incontestability period, usually two years. This means that during this time, insurers can investigate and contest claims if they discover omissions, misstatements, or non-disclosure.
After the period passes, insurers generally can’t cancel your policy. Unless fraud or intentional concealment is proven.
⚠️ Misconception: Many people think that if they hide information for two years, they’re safe. The truth is, if fraud is detected, insurers can void your policy at any time, even after decades of paying premiums.
Why Insurance Claims Get Denied for Non-Disclosure
When you make a claim, insurers review your application history, medical records, and hospital reports. If inconsistencies are found, they may:
Delay your payout,
Reject the claim,
Terminate the policy.
This can happen even if the undisclosed issue (like prediabetes) isn’t directly connected to your claim (like leg pain). The reason is simple: the application was incomplete or misleading, so the contract itself is invalid.
Common Misconceptions About Insurance Disclosure
“Minor Health Issues Don’t Matter”
Even conditions like high blood pressure, elevated blood sugar, or abnormal urine results must be disclosed. Only the insurer has the right to decide if it’s relevant.
“My Agent Said I Don’t Need to Disclose”
Agents are not underwriters. The legal responsibility to provide accurate information falls on you—the policyholder.
“After Two Years, My Policy Is Safe”
The incontestability period doesn’t protect you if fraud or intentional misrepresentation is discovered. Non-disclosure can still void your policy anytime.
How to Avoid Claim Denial
- Disclose everything (major or minor)
- Share medical test results or reports if available
- Accept possible higher premiums or exclusions, it's better than losing your entire claim
Final Thoughts on Insurance and Disclosure
The true value of insurance lies not in cheap premiums, but in the certainty that your family will be protected when something goes wrong.
By hiding your medical history, you may save a little in the short term but you risk losing everything when it matters most.
👉 Not disclosing your health history doesn’t just mislead the insurer. It betrays yourself and your loved ones.
Contact Us Now
Don’t take chances with your family’s protection. If you’re unsure about your past medical history or what needs to be disclosed, let’s review your policy together.
👉 Contact us today for a free policy review. Make sure your insurance is solid, reliable, and ready to protect you when you need it most.