uberrima fides

today is my usual scheduled monthly life insurance training open to all of my company's advisors.

and for today, i have chosen to focus on the only 2 products that provides guaranteed protection* even while the child is in the mother's womb. yes, i'm referring to:

a. prudential prufirst gift and
b. axa mum's advantage/mum's advantage plus.


notes:
in june 2010, prudential was the very first insurer to launch singapore's first and only plan, prufirst gift to offer guaranteed protection* even before the child is born.

and in november 2011, axa life followed up with their launch of an almost similar proposition, axa mum's advantage/mum's advantage plus.

*terms and conditons apply

my monthly life insurance training has the dual objectives of equipping our company's advisors with the insights of the latest happenings in the insurance industry and comprehensive product knowledge as well.

my comments:

during the course of my training, i digressed and shared with them on my experience with individuals and families (referred to me by my existing clientele) choosing not to take my advice on full disclosure of their past medical history.

what was their response?

surprisingly or not surprisingly, some of my company's advisors recounted of their similar experiences.

i have no problems with the so-called business that i have 'lost' with the people that i have sat through meetings because they do not seem to see (or agree on) the importance of full disclosure.

but how do i reconcile the fact that these people have taken up insurance for 'peace of mind' and yet, whatever policies they have incepted (without full disclosure) can give them 'peace of mind' when it comes to the crunch should the day come when a claim is filed?

on the principle of uberrima fides or utmost good faith (meaning full disclosure), am i talking about pockets of isolated cases in terms of the people i have sat with (and my company's advisors as well) or is this a full blown problem lurking beneath the surface of the insurance contracts already incepted?