Want your life insurance claim to go smoothly? Here's a simple thing you can control

When a life insurance claim is denied, it is often thought that the insurer was searching for an excuse to refuse. However, the most common reason claims are not paid is something much simpler and within your control: failing to disclose relevant information when you first applied for coverage. This is known as non-disclosure, and while it accounts for a small percentage of claims denied, it is almost entirely preventable.

In 2025, Discovery Life paid 99.3% of all claims, totaling R9.1 billion. Only 0.4% of those not paid were declined specifically due to non-disclosure at the initial application stage.

Non-disclosure occurs when you omit a material fact that could affect your premium or eligibility for coverage when you apply for or update a policy. This does not necessarily mean you intentionally withheld information; sometimes, it happens unintentionally because people are unaware that a certain detail is relevant. Disclosing uncomfortable truths does not automatically lead to coverage denial; instead, it helps the insurer accurately assess your risk.

Sometimes, they may request additional medical records or tests, apply a loading (a higher premium), or exclude specific conditions. However, outright refusal of coverage is rare.

The critical period for disclosing information is before your policy begins, also known as the underwriting phase. All relevant details up to that point must be disclosed; however, after the policy starts, any new coverage or benefits can be disclosed later without affecting your existing policy. If non-disclosure is discovered during the claim process, the insurer may investigate, especially if there are discrepancies between the information provided at application and the medical records discovered after the claim.

In severe cases, the policy may be voided, and no claim paid. In less serious situations, the insurer might adjust premiums, exclusions, or benefits retrospectively to reflect what should have applied, which can still impact the payout. To avoid non-disclosure, it is crucial to be transparent about all relevant information when applying for or updating your policy.

If you are unsure what needs to be disclosed, a Discovery accredited financial adviser can assist you in reviewing your policy and understanding Discovery Life's coverage structure before you apply or make changes.