Term Life Insurance Articles
The Consequences Of Lying On A Term Life Insurance Application
2010-09-11
Everyone tries to save money in every way possible. Even on important necessities such as insurance, doing what it takes to minimize term life insurance rates can make a huge difference in your monthly savings. However, lying on your insurance application should not be even considered as a strategy for saving money.
For any kind of insurance policy, one of the fundamental principles is good faith. This means that it is your duty to disclose material facts to the insurance company. This will help your insurer give the most accurate term life insurance rates given the facts you have provided.
Lying on your insurance application will eventually bring about more problems and more expenses in the long run. Always keep in mind that all your statements will be reviewed by your insurer. Even if the lies you have stated are not caught early on, it will still serve as grounds for the cancellation of your policy. Insurance companies are only obliged to pay out for matters in which you were truthful about in your application. If they discover that you've been dishonest, your insurance contract will be null and void.
There are many people who are dishonest about their habits when applying for insurance. In particular, they are not truthful about their habits of drinking or smoking. Some insurance policies are issued without requiring any physical tests and so, applicants take advantage of this opportunity to tweak the truth a bit.
Most insurance policies carry a 2-year contestability period. This period allows the insurer to deny a party's death claim should it discover that the policyholder had been untruthful about an ailment or medical condition during the application process. For instance, you're a smoker and you did not disclose such information in your insurance application. If you die of lung disease within the 2 years of purchasing the insurance policy, the insurer may have the grounds to not pay off your policy's death benefit.
You run the risk of being uninsured if you provide false information. But if you misrepresented the facts unknowingly, your insurance policy would still be considered valid. So if you claimed to have perfect health when applying for insurance and eventually discovered that you had a disease, your insurance policy would still be valid. Misrepresentation of facts will only have consequences if it is knowingly done.
In any case, it is never wise to lie on your insurance application because the insurer will eventually uncover the truth. There are many ways to find low term life insurance rates without risking your financial future. Consult with brokers and research online to compare life insurance quotes, and to find the best deal that suits your lifestyle.
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Everyone tries to save money in every way possible. Even on important necessities such as insurance, doing what it takes to minimize term life insurance rates can make a huge difference in your monthly savings. However, lying on your insurance application should not be even considered as a strategy for saving money.
For any kind of insurance policy, one of the fundamental principles is good faith. This means that it is your duty to disclose material facts to the insurance company. This will help your insurer give the most accurate term life insurance rates given the facts you have provided.
Lying on your insurance application will eventually bring about more problems and more expenses in the long run. Always keep in mind that all your statements will be reviewed by your insurer. Even if the lies you have stated are not caught early on, it will still serve as grounds for the cancellation of your policy. Insurance companies are only obliged to pay out for matters in which you were truthful about in your application. If they discover that you've been dishonest, your insurance contract will be null and void.
There are many people who are dishonest about their habits when applying for insurance. In particular, they are not truthful about their habits of drinking or smoking. Some insurance policies are issued without requiring any physical tests and so, applicants take advantage of this opportunity to tweak the truth a bit.
Most insurance policies carry a 2-year contestability period. This period allows the insurer to deny a party's death claim should it discover that the policyholder had been untruthful about an ailment or medical condition during the application process. For instance, you're a smoker and you did not disclose such information in your insurance application. If you die of lung disease within the 2 years of purchasing the insurance policy, the insurer may have the grounds to not pay off your policy's death benefit.
You run the risk of being uninsured if you provide false information. But if you misrepresented the facts unknowingly, your insurance policy would still be considered valid. So if you claimed to have perfect health when applying for insurance and eventually discovered that you had a disease, your insurance policy would still be valid. Misrepresentation of facts will only have consequences if it is knowingly done.
In any case, it is never wise to lie on your insurance application because the insurer will eventually uncover the truth. There are many ways to find low term life insurance rates without risking your financial future. Consult with brokers and research online to compare life insurance quotes, and to find the best deal that suits your lifestyle.
