Term Life Insurance Articles
Frequent Lies Found On Life Insurance Applications
2009-12-26
As people continue to search for ways of saving money by spending less, life insurance continues to be a high priority in the lives of many people. When obtaining term life insurance quotes, this often leads people to falsify certain information on their applications in order to receive lower quotes and more coverage. By answering a number of activity and health-related questions favorably, people assume they can obtain a lower quote. Life insurance companies are aware of the most common lies or misrepresentations of the truth, and they are often discovered during the application screening process.
Frequent Lies about Health
When applying for term life insurance, it is tempting to provide misleading information about the applicant's health. The most frequent of these is in regards to the use of illegal drugs and tobacco products by claiming the "no tobacco" box on the application. Some go as far as temporarily quitting prior to the exam in order to achieve favorable lab results. Additionally, a history of cancer and depression is also denied on applications, regardless of their presence in the applicant's family history. While untreated depression is more difficult to detect, the true family history is often on record in several locations.
Frequent Lies about Activities
Applicants often attempt to receive lower term life insurance quotes by providing misleading information about their legal and financial activities. Drunk-driving convictions and moving violations are most commonly misrepresented. While most people will admit to one DUI or moving violation, applicants often lie about subsequent convictions, especially when several are present. Misrepresentations of income are also common. Applicants often claim a higher amount of income in order to qualify for more coverage then they are eligible for. Travel plans to dangerous locations are often denied or adjusted by the applicant by claiming a shorter stay than is actually planned.
Intentionally providing misleading or untruthful information when applying for term life insurance is both unethical and against the law. Additionally, by committing fraud, the applicant risks having their policy adjusted to the correct rate based on truthful information. The life insurance company also has the option of terminating the policy at any time, including after death. When applicants falsify life insurance applications, the truth about their health and medical history is brought out in the medical exams, medical records and autopsy reports. Applicant information can also be verified with state motor vehicle records, credit reports, criminal history and other public records. While it may be tempting to give misleading information when applying for life insurance, it is a greater benefit to the applicant to complete the application honestly, even if it means paying a somewhat higher rate.
Free Insurance Quotes
As people continue to search for ways of saving money by spending less, life insurance continues to be a high priority in the lives of many people. When obtaining term life insurance quotes, this often leads people to falsify certain information on their applications in order to receive lower quotes and more coverage. By answering a number of activity and health-related questions favorably, people assume they can obtain a lower quote. Life insurance companies are aware of the most common lies or misrepresentations of the truth, and they are often discovered during the application screening process.
Frequent Lies about Health
When applying for term life insurance, it is tempting to provide misleading information about the applicant's health. The most frequent of these is in regards to the use of illegal drugs and tobacco products by claiming the "no tobacco" box on the application. Some go as far as temporarily quitting prior to the exam in order to achieve favorable lab results. Additionally, a history of cancer and depression is also denied on applications, regardless of their presence in the applicant's family history. While untreated depression is more difficult to detect, the true family history is often on record in several locations.
Frequent Lies about Activities
Applicants often attempt to receive lower term life insurance quotes by providing misleading information about their legal and financial activities. Drunk-driving convictions and moving violations are most commonly misrepresented. While most people will admit to one DUI or moving violation, applicants often lie about subsequent convictions, especially when several are present. Misrepresentations of income are also common. Applicants often claim a higher amount of income in order to qualify for more coverage then they are eligible for. Travel plans to dangerous locations are often denied or adjusted by the applicant by claiming a shorter stay than is actually planned.
Intentionally providing misleading or untruthful information when applying for term life insurance is both unethical and against the law. Additionally, by committing fraud, the applicant risks having their policy adjusted to the correct rate based on truthful information. The life insurance company also has the option of terminating the policy at any time, including after death. When applicants falsify life insurance applications, the truth about their health and medical history is brought out in the medical exams, medical records and autopsy reports. Applicant information can also be verified with state motor vehicle records, credit reports, criminal history and other public records. While it may be tempting to give misleading information when applying for life insurance, it is a greater benefit to the applicant to complete the application honestly, even if it means paying a somewhat higher rate.
