When it comes to applying for life insurance, it's easy to make mistakes or overlook certain details. But if you intentionally provide false information, the consequences can be significant. It could even result in a claim on your policy being denied.
Here’s a closer look at what could happen if you lie on your application.
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What will you be asked when you apply for life insurance?
Aside from the basic details such as your name, age, and address. Insurers may also ask questions about your medical history, lifestyle habits, and occupation.
Insurers typically want to know about your health history, such as any pre-existing medical conditions, past surgeries, or long-term illnesses. They may ask about treatments or medications you're currently taking, as well as your family's medical history.
They may also ask if you are a smoker or use any other tobacco products, as this can increase your risk. Your occupation may also come under scrutiny, particularly if you work in high-risk jobs, where the likelihood of an accident is higher.
Why might you lie on your life insurance application?
There are a number of reasons why people lie during the application process - the main one being to get cheaper premiums. For some, it can be tempting to omit certain details if it means paying a lot less for cover each month.
If you have a medical condition, you may be worried that disclosing the condition could lead to higher premiums or even denial of cover.
Likewise, if you smoke or previously smoked, you might think your insurer may not be able to find out about your smoking history, especially if it has been some time since you quit. However, your insurer can access your medical records, which often include your smoking status and any related health issues.
Consequences of lying on your application
It might be tempting to lie about or leave out certain details when you apply for cover, especially if it saves you money. But it could have repercussions that could leave your family and/or loved ones at risk, such as:
1. Your policy may be cancelled
If your insurer discovers that you have provided false information, they may have grounds to cancel your policy outright. Any premiums you pay up to that point will not be refunded, and you will need to take out a new policy if you still wish to have life cover.
If it's been some years since you took out a policy, you may find that cover is even more expensive as you age.
2. A claim could be denied
Even if your policy isn't cancelled, false information could lead to a claim being denied after your death. This is more likely in cases where your death was related to the undisclosed information you provided on your application.
For example, if you lied about a pre-existing medical condition and then passed away from complications related to that condition, the insurer may investigate. If they discover you withheld details, they can deny a claim made by your beneficiaries.
This could have devastating consequences for your loved ones, leaving them without the financial support you intended to provide.
3. Your premiums could be adjusted
You may think that lying on your application will lead to lower premiums, but the reality can be quite different. If an insurer discovers inaccuracies in your application during the policy, they have the right to adjust your premiums.
This means you could find yourself facing increased premiums that reflect the actual level of risk that you pose. For instance, if you initially claimed to be a non-smoker but were later found to be smoking, your insurer might raise your premiums.
If you're unsure about what information you need to provide on your application, it’s always best to disclose everything honestly. This way, you can avoid potential penalties.
Unsure about your options? Speak to an adviser.
If you have a pre-existing medical condition, a hazardous occupation or are unsure about what type of policy you need, our advisers are just a phone call away. Call our team today on: 01392 436193 (Monday - Thursday 9am - 5.30pm, Friday 9am - 5pm).
Or if you already know what you need, you can get a quote online to compare low-cost life insurance quotes from leading providers.
