Why is it critical to disclose pre-existing conditions when applying for health insurance?

Disclosing pre-existing conditions when applying for health insurance is critical because failure to do so can result in the denial of coverage or claims related to those specific conditions. Insurance companies rely on this information to assess risk and determine their liability. If a policyholder does not disclose a condition that they were aware of prior to obtaining coverage, the insurer may have grounds to deny claims based on that condition, arguing that the applicant has intentionally withheld relevant information. Thus, full transparency is necessary not only to ensure the validity of the coverage but also to maintain the integrity and trust within the insurance system. Proper disclosure helps to avoid potential complications, such as claims disputes or policy cancellation, later on.