We’re here to help you get the best price on a term life insurance policy. And glossing over medical or personal challenges in your past may seem like a harmless way to get the protection your family at a low cost, but it’s not a good idea.
Here are just three reasons—outside of the fact that it’s not the right thing to do—why you shouldn’t omit details or lie on your life insurance application:
Your application may be denied.
The insurance companies have many resources that allow them to confirm the information you give on your application. The three main ones include:
- The Medical Information Bureau (MIB) – contains both medical and non-medical information for fraud detection purposes pulled directly from previous life and health applications that you’ve submitted.
- Your medical records – when you apply for life insurance you sign a medical records release authorization. This permits insurance companies to pull your records and review your medical history.
- Your driving records – insurance companies often pull motor vehicle reports to review any possible DUI incidences or other risky driving behaviors.
Through these means, if the insurance company discovers that you lied or omit multiple facts, they could decline you altogether. Or the facts they uncover could deem you uninsurable and they decline you anyway.
You may be charged higher term life insurance premiums.
As mentioned a moment ago, insurance companies have resources to confirm your application information. If you lie or omit certain things on your term life insurance application, the insurance company will likely find out and while you may still be approved for coverage, the premiums they offer you will be higher. The term life insurance quotes you originally received based on the incorrect information given will not be what you end up with.
Your family’s death benefit claim may be reduced or rejected.
Every term life insurance policy comes with a contestability period—usually the first two years of the policy. If you die during this timeframe, the insurance company has the right to investigate. If it’s discovered that you misrepresented yourself on your application or omit pivotal information, the insurance company has the right to reduce the money your families receives or even deny the claim altogether.
After the contestability period as passed, the insurance company no longer has the right to investigate claims unless you committed outright fraud.
Lying on your application for a chance at a lower premium just isn’t a wise decision. It puts your family at unnecessary risk—and isn’t protecting your family the reason that you wanted to get life insurance in the first place?
There’s never a good reason to be dishonest on your life insurance application, but it’s common to be concerned that your health history or lifestyle may make your term life insurance premiums too expensive for your budget.
See what you’d pay for life insurance
Quotacy is a life insurance broker. This means we’re your advocate and work with many top-rated companies to find you the best possible price for life insurance.
Being honest on your life insurance application ensures your agent has all the right information to set appropriate expectations. This also allows them to match you with the insurance company that will be most lenient with any risk factors you may have that could impact life insurance rates.
We help people with all sorts of health and lifestyle issues get affordable life insurance. Whether you take medication to treat depression, have a history of DUIs, or participate in risky hobbies like rock climbing, Quotacy can help.
Watch the Lying on Life Insurance Application Video
About the writer
Natasha Cornelius, CLU
Senior Editor and Licensed Life Insurance Expert
Natasha Cornelius, CLU, is a writer, editor, and life insurance researcher for Quotacy.com where her goal is to make life insurance more transparent and easier to understand. She has been in the life insurance industry since 2010 and has been writing about life insurance since 2014. Natasha earned her Chartered Life Underwriter designation in 2022. She is also co-host of Quotacy’s YouTube series. Connect with her on LinkedIn.