Applying for Life Insurance: Tell the Truth

When applying for life insurance it is so easy to leave things out such as pass medical history, or current problems that you are experiencing. After all, you know that telling the truth may raise your premium. But unfortunately, lying on your life insurance application is not going to get you anywhere. In fact, it may end up putting your family in a bad position if something where to happen to you.

The Insurance Information Institute stated that dozens of families missed out on life insurance benefits due to the policy holder not disclosing accurate information on their application. The most common lie that people tell on their application has to do with tobacco usage. If you do not disclose this information there is a good chance that your family will not be able to collect benefits in the event of your death.

The reason that so many people lie about tobacco use is quite simple. This can more than triple the premium for any policy holder. So instead of paying the extra money they simply lie about their use of tobacco. The problem with this is that there are so many ways that the policy holder can get caught that the lie often times backfires sooner rather than later.

One thing that a lot of people do not know is that most life insurance companies require a urine and blood test before issuing a policy. If you are caught lying through the results of one of these tests, you will get a bad mark against your record and of course be denied the policy.

The bottom line is that life insurance companies have the right to know about the health of the people they are selling policies to. They base their premiums on a number of different factors, and lies can often times skew the cost of a policy.

If you decide to lie on your life insurance application you are taking a huge risk.