It is vital to tell the truth on your life insurance application, but even so there are millions of people who report items that turn out to be lies. Life insurance companies understand that many people will either exaggerate or flat out lie on their application form. This applies especially to seniors who want to save as much money as possible on their rates.
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While everyone can make a mistake, not putting the full truth on your application form carries with it consequences that may deny you the life insurance policy at the rates you want.
The Five Most Common Lies:
When applying for senior life insurance, these are the most common lies that people put on their application forms.
No Use of Tobacco Products: This is arguably the most common lie that this placed on a life insurance application form and one that is usually the easiest for insurance companies to catch. Unless the no-exam or guaranteed policy is selected, the applicant will be tested for tobacco in their system.
No Use of Drugs: This is another fact that can be easily checked out by the insurance company thanks to the blood or urine testing that is also used to spot tobacco use. While the test is often designed to pick up illegal drugs in the system, it can also find the use of legal ones as well. It pays, to be honest about reporting all of the prescription medications that you use.
Not Being Overweight: Another common lie is reporting weight as far lower than what it is. One of the basic tests they perform during a medical exam is weighing the applicant. The more weight you are off on your application, the more likely you will pay higher rates based on your current weight. So, be sure to weigh yourself accurately before filling out the application form.
No History of Depression: Another lie that is often used is not telling the truth about depression. If you have taken medication or have been professionally treated for depression, it will appear on your medical history which is checked by the insurance company.
No Extensive Travel: Both extensive traveling and engaging in dangerous hobbies are counted against those who apply for life insurance. While traveling is harder to check, seniors are known to travel and insurance companies may take the extra step of checking out if you have been traveling considerably over the past year.
What Happens When You Are Caught?
If the insurance company finds a falsehood on your life insurance application, several things may happen depending on the severity of the misinformation. The worst result is that your policy application will be rejected and you will not be able to receive life insurance from that particular company.
However, depending on the extent of the lie the insurance company may simply charge you a higher rate for the same policy. In the end, telling the truth on your life insurance application form is paramount to avoiding mistakes that can lead to higher rates or even rejection by the insurance company.