Lying on your life insurance application is NEVER a good policy. Telling the truth is not just a virtue, it is the law when it comes to life insurance. The temptation to lie on your life insurance application in order to save a few dollars will cost you more in the long run, possibly even a policy cancellation.
If the insurance carrier finds out that you failed to disclose important health, lifestyle, or criminal information it is called non-disclosure. The company will ultimately terminate or invalidate that policy. Full disclosure is a fundamental principle of entering into an insurance contract. That contract can be nullified if you provide false information.
The most common problems occur with health or lifestyle questions. For instance, if you smoke occasionally but don’t consider yourself a smoker. Well, the medical exam that the insurance company requires you to take might detect the nicotine in your system and raise a red flag. Therefore, it’s better, to be honest. Although some carriers are more flexible than others when it comes to tobacco use, so you may not have to pay as much as you are thinking.
That same insurance physical, which includes lab work, will reveal elevated cholesterol levels, diabetes, and hypertension to name some of the most common ailments. Hiding these conditions from insurance companies is almost impossible. They employ experts in their underwriting departments trained to investigate your background. They will request your medical records from your physician(s). They will look into your lifestyle habits—such as whether you have risky hobbies such as skydiving or if you are a private pilot—and they will even look at your driving record.
Even if it turns out to be an insignificant oversight on your part, such as forgetting to mention a recommended diagnostic test that you failed to take, it could show up in your doctor’s medical notes and the insurance underwriter might wonder why. Misleading an insurance company about these things could create suspicion as to what else you might have failed to disclose. Ultimately, any of these oversights can be corrected with your carrier’s underwriters. But lack of full disclosure of any serious health condition could cause the carrier to reject you or could someday nullify and void your death benefit claim to your beneficiaries.
Purchasing life insurance is a form of protection for your family in the event that something happens to you. But the insurance companies have a right to know the kind of financial risk they are taking in insuring your life. When you choose to give false information you run the risk of not being insured. It is always a good policy to be truthful. By not being honest you risk hurting the ones you want to protect the most.
Lack of full disclosure of any serious health condition could cause the carrier to reject you or could someday nullify and void your death benefit claim to your beneficiaries.
With all of the plan options you have, figuring out which policy is best for you and your family can be overwhelming.
The best way to get started is to get multiple life insurance quotes from different insurance companies. This gives you an idea of what you will be paying every month/year for your life insurance policy. And, if you think your health condition and lifestyle habits will make your life insurance premiums very expensive, then you always have the option to choose no medical exam life insurance. Call us now and we will be happy to guide you through the process. Do not worry, you will have no obligation to buy the policy through us.
LifeQuote offers several features to help make the process of finding the right life insurance as simple and painless as possible. Our easy-to-use life insurance needs calculator helps you figure out how much insurance you need and for how long.
Visit our FAQs about Life Insurance section to get more answers to Frequently-Asked-Questions.
To compare quotes, simply fill out the form on the right and you will get the best available prices from different insurance carriers. If you’re unsure of how much coverage you need, or how long the term should be, connect with one of our knowledgeable representatives immediately. You can also send us an email.
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