Intentionally providing false or misleading information on your life insurance application can have serious consequences. Not only may you be barred from ever applying for insurance again with the same company, but any policy you received will likely be revoked. Insurance fraud is also a crime, which means you can even go to prison for lying on your life insurance application.
Why Do People Lie on Their Life Insurance Application?
Ultimately, people may be tempted to lie on a life insurance application to secure a desirable amount of coverage at a preferred rate. Life insurance can provide a tremendous benefit in many people’s lives, so some might think it’s worth it to provide false information if it means securing a favorable policy.
As tempting as it may be to conceal or falsely report information, however, you should always be truthful on every life insurance application.
What Do People Lie About on Their Insurance Applications?
Life insurance applications ask for all kinds of biographical and medical information about a person, someone may be tempted to be less than truthful about some or all of it.
In most cases, people who intentionally provide false information on their life insurance applications may lie about:
- Age
- Income
- Weight
- Pre-existing medical conditions
- Family medical history
- Current prescriptions
- Nature of their employment
- Smoking, alcohol, or drug use
Because the answers to questions about these factors can directly affect the premium amount and death benefit value, or even access to coverage altogether, some people may be tempted to conceal or lie about relevant information.
Is It Still Lying If I Simply Don’t Say Anything?
Yes. When you fail to disclose information that a life insurance company wants to assess your level of coverage and premium, this can be interpreted as a lie of omission.
The nature of this lie is the same as willfully providing false information, so you are likely to face the same consequences in the likely event that you’re caught.
What If I Wasn’t Sure or Didn’t Know
This issue is a bit of a gray area. A life insurance company generally asks for information that a reasonable person ought to know or information that may be gathered during the medical assessment. If you are accused of providing false information and you genuinely didn’t know something, you may be able to iron out this issue by discussing the situation with your carrier.
Keep in mind, however, that your carrier may argue that you should have known about something rather than provide false information or fail to report information. You will likely lose your policy, but you probably won’t have to worry about criminal charges.
What If I Have Other Questions About Life Insurance?
Insurance Specialists, Inc. is dedicated to helping people answer their questions about life insurance and navigate the complicated process of finding the right policy for them.
Our team of experts can help you understand how different types of policies work and recommend products that are suitable for your lifestyle and budget. We also strive to provide comprehensive customer service, answering any questions or concerns you may have about life insurance coverage in a timely manner.
For more information about life insurance, us, or our services, contact Insurance Specialists, Inc. today.