Term Insurance
2026-10-23 5 Min read
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We have written before about what happens when tobacco users leave that box unticked. This is the bigger version of that story, because tobacco is only the most famous item on a much longer list.
A proposal form is not just paperwork. It is the basis on which the insurer agrees to cover you, and at what price. It is also the document a claims team will read years later, if a claim is ever made. Everything else rests on it being accurate.
Now for the good news, and it really is good news. Telling the insurer something almost never causes the problem people fear. Hiding it is what causes problems.
What "material information" actually means?
You will see the phrase *material information* on the form. It refers to any information relating to the life insured that would influence an insurer's decision to accept the risk, reject the risk, charge a different premium, impose exclusions, or decide other policy terms.
A condition you have not thought about since 2016. A hobby you do twice a year. A tablet you take so routinely you have stopped thinking of it as medication. All of these can count, even when they feel trivial to you.
The test is not how important it seems to you. It is whether it would have changed the insurer's assessment.
Since you cannot know that from the outside, here is the rule that works: if a question is asked, answer it fully and truthfully. If you are unsure whether something belongs, put it in and let the underwriter decide.
A condition you have not thought about since 2016. A hobby you do twice a year. A tablet you take so routinely you have stopped thinking of it as medication. All of these can count, even when they feel trivial to you.
The test is not how important it seems to you. It is whether it would have changed the insurer's assessment.
Since you cannot know that from the outside, here is the rule that works: if a question is asked, answer it fully and truthfully. If you are unsure whether something belongs, put it in and let the underwriter decide.
Things to Consider Before filling out a Proposal Form
Height and weight. Your body mass index affects the assessment, and people round their weight down almost by reflex. If a medical test follows, the real figures come out anyway.
Tobacco in every form. Not just cigarettes. Beedis, cigars, hookah, vapes, gutka, khaini, paan with tobacco and zarda all count. So does occasional use. "Only at weddings" is still a yes.
Alcohol, in honest quantities. The form usually asks how often and how much, not simply yes or no. A rough but truthful answer is far better than a flattering one.
Medical conditions, past and present, including medication. Diabetes, blood pressure, thyroid problems, asthma, a surgery in your twenties, a hospital stay that turned out to be nothing. If a doctor has diagnosed it or prescribed for it, it belongs on the form.
Family history. Insurers ask about conditions in your parents and siblings because some risks do run in families. This is not a judgement about you, and very often it makes no difference to the outcome.
Occupation and hobbies. Working at height, handling chemicals, long hours on the road, mining, defence roles. On the hobby side: scuba diving, motorsport, mountaineering, paragliding. Even if you only do it at weekends, it counts.
Foreign travel and residence. Where you travel, how often, and whether you plan to live abroad. Some destinations and long stays affect the assessment.
Existing cover, pending applications, and past decisions. How much cover you already have. Applications in progress with other insurers. And whether any insurer has previously declined you, delayed a decision, added an exclusion or charged you extra.
That last one gets left out constantly. It is also one of the most important items on the list.
Tobacco in every form. Not just cigarettes. Beedis, cigars, hookah, vapes, gutka, khaini, paan with tobacco and zarda all count. So does occasional use. "Only at weddings" is still a yes.
Alcohol, in honest quantities. The form usually asks how often and how much, not simply yes or no. A rough but truthful answer is far better than a flattering one.
Medical conditions, past and present, including medication. Diabetes, blood pressure, thyroid problems, asthma, a surgery in your twenties, a hospital stay that turned out to be nothing. If a doctor has diagnosed it or prescribed for it, it belongs on the form.
Family history. Insurers ask about conditions in your parents and siblings because some risks do run in families. This is not a judgement about you, and very often it makes no difference to the outcome.
Occupation and hobbies. Working at height, handling chemicals, long hours on the road, mining, defence roles. On the hobby side: scuba diving, motorsport, mountaineering, paragliding. Even if you only do it at weekends, it counts.
Foreign travel and residence. Where you travel, how often, and whether you plan to live abroad. Some destinations and long stays affect the assessment.
Existing cover, pending applications, and past decisions. How much cover you already have. Applications in progress with other insurers. And whether any insurer has previously declined you, delayed a decision, added an exclusion or charged you extra.
That last one gets left out constantly. It is also one of the most important items on the list.
"But it was years ago, and it's under control"
This is the most common reason people leave something out. It is understandable. It also misunderstands what the insurer is doing.
The assessment is not a judgement on how well you are managing your health. Someone whose blood pressure has been controlled on medication for six years, with regular check-ups and steady readings, is often perfectly acceptable to insure.
But the underwriter can only reach that conclusion if they are told.
Leave it out and you turn a manageable fact into a disputed one. The condition itself might have cost you a small extra premium. Not mentioning it creates a much bigger problem — and it surfaces at the moment your family is least able to deal with it.
The assessment is not a judgement on how well you are managing your health. Someone whose blood pressure has been controlled on medication for six years, with regular check-ups and steady readings, is often perfectly acceptable to insure.
But the underwriter can only reach that conclusion if they are told.
Leave it out and you turn a manageable fact into a disputed one. The condition itself might have cost you a small extra premium. Not mentioning it creates a much bigger problem — and it surfaces at the moment your family is least able to deal with it.
What actually happens when you disclose something?
Majority of disclosures are simply absorbed into the assessment.
Where something does make a difference, there are some possible outcomes:
● Accepted with a loading. The policy is issued with a small extra premium reflecting the additional risk.
● Postponed. The decision waits a few months, until a recent surgery has healed or test results are available. The applicant may have to re-apply
● Declined. Occasionally, cover is not offered.
Where something does make a difference, there are some possible outcomes:
● Accepted with a loading. The policy is issued with a small extra premium reflecting the additional risk.
● Postponed. The decision waits a few months, until a recent surgery has healed or test results are available. The applicant may have to re-apply
● Declined. Occasionally, cover is not offered.
Two people, one condition
Arun and Vikram are both 38. Both were diagnosed with high blood pressure four years ago. Both are on medication and both are stable.
Arun declared it. The insurer asked for a medical, reviewed his readings and issued the policy with a small loading. He grumbled about the extra premium for a week, then forgot about it.
Vikram did not. He reasoned that it was under control, that it was nobody's business, and that a doctor would not spot it in a routine test. He paid the standard premium and felt rather clever about it.
Both policies look identical sitting in a drawer. They are not remotely the same thing.
Arun's family has a claim owing to hypertension that has already been assessed and priced. Vikram's family has a claim for the same ailment that will now be examined against a form saying he had no medical conditions — at a time when nobody in that house has the energy for a dispute.
The difference between them was a small extra premium and one honest answer.
Arun declared it. The insurer asked for a medical, reviewed his readings and issued the policy with a small loading. He grumbled about the extra premium for a week, then forgot about it.
Vikram did not. He reasoned that it was under control, that it was nobody's business, and that a doctor would not spot it in a routine test. He paid the standard premium and felt rather clever about it.
Both policies look identical sitting in a drawer. They are not remotely the same thing.
Arun's family has a claim owing to hypertension that has already been assessed and priced. Vikram's family has a claim for the same ailment that will now be examined against a form saying he had no medical conditions — at a time when nobody in that house has the energy for a dispute.
The difference between them was a small extra premium and one honest answer.
A five-minute checklist before you sign
Do this properly, once.
● Gather your papers first. Your last two or three medical reports and any current prescriptions, so you are not answering from memory.
● Read every question. Do not skim, especially the health and lifestyle related questions .
● Fill it in yourself. Answer in your own words, and do not let anyone else complete the form for you.
● Ask if anything is unclear. Call the insurer rather than guessing.
● Read it back before signing, and keep a copy. It is the single most useful document you will ever hold about your own policy.
● Gather your papers first. Your last two or three medical reports and any current prescriptions, so you are not answering from memory.
● Read every question. Do not skim, especially the health and lifestyle related questions .
● Fill it in yourself. Answer in your own words, and do not let anyone else complete the form for you.
● Ask if anything is unclear. Call the insurer rather than guessing.
● Read it back before signing, and keep a copy. It is the single most useful document you will ever hold about your own policy.
Already have a policy and just realised you left something out?
Do not sit on it. Contact your insurer, tell them what was missed, and ask how to put it right.
Depending on what it is and how long ago, the insurer may simply record it, ask for a medical, or adjust the terms.
Any of those is a far better position than an unresolved gap between what your form says and what is true. And insurers deal with this more often than you would think.
Depending on what it is and how long ago, the insurer may simply record it, ask for a medical, or adjust the terms.
Any of those is a far better position than an unresolved gap between what your form says and what is true. And insurers deal with this more often than you would think.
Over to you
A proposal form is a conversation, not a test.
The insurer is trying to understand the risk it is agreeing to cover. You are trying to make sure your family is looked after. Those two aims point in exactly the same direction. The only thing that pulls them apart is an unanswered question.
Fill it in honestly, keep a copy, and you will never have to think about it again.
If anything on the form is unclear, our team is on 1800 266 8833 between 9:00 am and 7:00 pm, Monday to Saturday.
The insurer is trying to understand the risk it is agreeing to cover. You are trying to make sure your family is looked after. Those two aims point in exactly the same direction. The only thing that pulls them apart is an unanswered question.
Fill it in honestly, keep a copy, and you will never have to think about it again.
If anything on the form is unclear, our team is on 1800 266 8833 between 9:00 am and 7:00 pm, Monday to Saturday.