Life Insurance Secrets
Our goal is to create savvy, educated life insurance consumers. That is why LifeQuote reveals some top industry secrets to help you save big money on your term life insurance policy. Let us share the secrets that will give you an edge on your insurance coverage.
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Life Insurance Myths
Everyone Lies On Their Life Insurance Application |
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Lying
on Life Insurance Applications is NOT a Good Policy.
Telling
the truth is not just a virtue, it is the law when it comes to life insurance.
The temptation to lie on your life insurance application in order to save a few
dollars will cost you more in the long run, possibly even a policy
cancellation. If the insurance carrier
finds out that you failed to disclose important health, lifestyle or criminal
information it is called non-disclosure and it is cause for the company to
terminate or invalidate that policy.
Full disclosure is a fundamental principle of entering into an insurance
contract. That contract can be nullified
if you provide false information.
The
most common problems occur with health or lifestyle questions. For instance, you smoke the occasional
cigarette but don't consider yourself a smoker.
Well, the medical exam that the insurance company requires you to take
might detect the nicotine in your system and raise a red flag. It's better to be honest. Some carriers are more flexible than others
when it comes to tobacco use.
That
same insurance physical, which includes blood lab work, will reveal high
cholesterol, diabetes, and hypertension--- to name the most common ailments.
Hiding these conditions from insurance companies is almost impossible. They employ experts in their underwriting departments
trained to investigate your background.
They will interview your physicians and research your medical records.
They will look into your lifestyle habits—such as whether you are a skydiver or
private pilot—and search for criminal pasts, including your driving record.
Even
if it turns out to be an insignificant oversight on your part, such as
forgetting to mention a recommended diagnostic test that you failed to take, it
could show up in your doctor's medical notes and the insurance underwriter might
wonder why. Misleading an insurance company about these things could create
suspicion as to what else you might have failed to disclose. Ultimately, any of these oversights can be
corrected with your carrier's underwriters.
But lack of full disclosure of any serious health condition could cause
the carrier to reject you or could someday nullify and void your death benefit
claim to your beneficiaries.
Purchasing
life insurance is a form of protection for your family in the event that
something happens to you. But the
insurance companies have a right to know the kind of financial risk they are
taking in insuring your life. When you choose to give false information you run
the risk of not being insured. It is
always a good policy to be truthful. By not
being honest you risk hurting the ones you want to protect the most. |
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