Disability application mistake could void coverage

I inadvertently gave wrong information about my parents’ health, when I was applying for individual disability insurance.  I forgot that my father had a minor stroke ten years ago.  I have started paying for the policy.  What should I do?

Honest Mistake

Dear Honest Mistake,

If the misstatement is significant, then the insurer can revoke your insurance.  Generally, they have two years to discover the misstatement and revoke your insurance. They might discover the information when you submit a claim; this is when they would take the time to verify your application data.

At that point, they could refuse to pay your claim. This would not be a good time to find out that you have no disability insurance — when you need it.

Your best bet is to call the agent and correct the error.   It’s unlikely that a decade-ago minor stroke will be considered “material” (an insurancey term for significant).   But, better to know now whether it will affect your coverage.

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Linda Riddell

About Linda Riddell

A published author and health policy analyst with 25 years’ experience, Linda Riddell's goal is to alleviate the widespread ailment of not knowing what your health plan can do for you.