The price of your life insurance policy often depends on your answers to a range of application questions, plus the results of your life insurance exam and personal medical records. Some applicants succumb to the temptation to lie on their applications, hoping their misrepresentations will sneak through the approval process and garner them lower rates. If a life insurance company finds out a person lied about past information and then dies due a related cause, there are two outcomes: The company could alter the death benefit to be equal to the amount the person would have gotten with a rated policy, or the company could rescind the entire policy. An insurance company’s range of remedies depends on specific state laws. Here are some of the most frequent lies discovered by life insurance companies in screening applications.
I don’t use tobacco: The desire to get affordable life insurance drives many applicants to not only check the “non-tobacco” boxes on their applications but to also abstain for several weeks before their medical exams so that nicotine Read the rest of this entry »
