Common Lies That Could Cost You Your Life Insurance
Every so often, I come across people who want to lie on their life insurance application
because they know that a certain lifestyle habit or condition will cause their application to be denied, or result in high life insurance rates. Dont do it. If youre thinking of doing it or have known buddies who have gotten away with it, you should know that you have other legitimate, safer options to get away with high risk habits or choices than lying on a legal document. Some like to argue the fact that insurance companies make millions on helpless consumers who may pay for many years into a policy and never draw on benefits. While life insurance is a service, it is also a business, which means that life insurance companies will go the extra mile to prove that you did something you were not supposed to and therefore cannot collect the claim you deserve. Lying could cost you your life, insurance that is, and its just not worth the risk.Be Aware of the Incontestability Clause
Almost all life insurance contracts in the United States and Canada have a legal provision that protect the insurer during the first two years of the policy being in force. Called the two-year incontestability clause, this clause was designed to save life insurance companies from paying out on a policy if the person lied on the application to qualify for cheap life insurance rates. Your death benefit claims will be under the utmost scrutiny during this time. For a life insurance carrier, a person dying barely two years into paying low premiums can be a huge loss. With low cost term life insurances premiums combined with massive policy face values, carriers will do everything they can to investigate causes of death thoroughly and meticulously, leaving no stone unturned in order to reject your claim should they find out you lied on the application.
Lie No. 1: Depression and Suicide
Committing suicide right after the purchase of a life insurance policy is fraud. Dont lie on your insurance application if you are struggling with depression. Almost all life insurance carriers do not allow payouts on suicide if committed within the two-year period. It may be hard to find a reasonably priced policy if you are taking depression medications, so talk to an experienced broker like AccuQuote about finding a carrier that will insure depression medications at lower prices.
Lie No. 2: Driving Records
Having DUIs, moving infractions or arrests can be detrimental to your chances for getting cheap life insurance rates. But that should not be grounds for lyingthe company can access your records from state motor vehicle departments. Multiple DUIs are usually considered automatic denials.
Lie No. 3: Tobacco
This includes smoking cigarettes, cigars, chewing tobacco, marijuana and other substances. Some companies, especially the top-rated ones, are even stricter and include quitting helps like nicotine gum and patches. To find the best deals, quit immediately. The longer youve stayed off cigarettes, the better the life insurance rate youll qualify for.
Lie No. 4: Alcohol and Drugs
Everyone struggles with lifestyle issues every once in their lifetimes. Life insurance companies understand that, and do not deny coverage right away. Look up sympathetic carriers on online aggregator websites or through your agent to find one that wont hike up premiums by a lot.
Lie No. 5: High Risk Hobbies
If you love the thrill and rush of your high risk hobby, which may range from mountaineering and scuba diving to sky diving and bungee jumping, its going to be hard to find low life insurance rates. But resist the urge to lie on your application. You can speak with your carrier or agent about excluding the hobby from your policy, which means if you die while scaling a new mountain range in the Andes, its fair and square for the company to deny your application. Some will let you apply on standard or preferred rates if you dont pursue the hobby for a certain number of months decided by the carrier.
Lie No. 6: Dangerous travel
You may need to travel to countries with political unrest or danger for the sake of family. Some carriers will need to know this information. Dont lie on your application as this can be automatic grounds for rescinding the policy based on its contractual terms.
Lie No. 7: Wealth
Some people want to have large life insurance policies to cover themselves especially if they have a number of children or dependents relying on them. However, in order to purchase large cover, your income must match the need for it. Life insurance companies are prohibited from selling you protection that will make you worth more dead than alive.
Lie No. 8: Family history
Insurers are usually interested in your immediate familys history, so if your spouse and children are in great health, there is no reason to worry. This doesnt rule out the fact that they do sometimes ask questions about hereditary disease and chronic conditions that are passed through genes. To qualify for the best rates despite family history, make sure that you are in top shape and are doing everything you can to maintain it.
Tools Carriers Use to Verify Death Claims:
Autopsy results, if fraud is suspected
Doctors records
Motor vehicle records for DUI and moving infractions
Credit reports
Private collectors who will use and pay for supplementary searches on your medications, emergency hospitalization and prior insurance records
When you purchase life insurance, you do it selflessly for someone else (at least most people do). Lying on your application could jeopardize your beneficiaries best interestsby not being able to collect the proceeds that were due to them because you did not act in good faith at the time of purchase. Are you willing to put them at risk to save on premiums? Be honest with yourself, be fair to the life insurance company and above all, be nice to your family. Dealing with a policy that wont pay out because of a mistake you made is leaving things in bad taste, something your loved ones dont deserve or ought to deal with while grieving your loss.
by: Pat Cassidy How To Recognize A Life Insurance Scam Life Insurance For Diabetics Life Insurance Tips For New Parents Life Insurance Charges And Fees How To Choose Right Life Insurance Company? Life Insurance Tips For Widows Zip Lines The Lifelines Of Extreme Adventure Fun And Excitement! North And South Goa Districts Where Life Is Literally A Beach Take Basic Precautions Before Buying Life Insurance Online Stop And Think! It May Change Your Life! Craving For Money And Lavish Lifestyle - Find A Rich Sugar Daddy Get Free Horoscopes And Know Your Life Better The Importance Of Insured And Licensed Electrical Contractors