Don't lie when signing up for life insurance - AmericaNowNews.com

Lying to get life insurance

If you've applied for life insurance, you know just how nosy some of the questions can be, and how tempting it can be to lie, knowing that admitting certain things about yourself are sure to raise your rates. 

But don't do it. 

Most standard life insurance policies include a two year contestable period, meaning the insurance company can rip up your policy if they find out you lied on your application. Things like forgetting to mention you'd been treated for cancer, or that you've smoked for forty years. What this means is that if you die within that two year window, your family may not see one cent of that money. 

Now there are some gray areas---not everybody remembers everything about their medical history, and failing to mention something may be due to forgetfulness, not fraud. As long as there is no intent to deceive, the policy is likely still in place.  

The good news is that positive changes in your health situation could mean lower rates. Say you finally quit smoking, or get your blood pressure under control. Let your carrier know. They may have a provision that allows for your rates to drop if you can prove that the change is sustained over a period of time—six months to a year, in many cases. 

Same goes if you've given up a hobby that your insurance company considers dangerous—like scuba diving, or piloting your own plane.   

So if you've had your life insurance policy for a few years, read back through it, and see if the information needs to be updated.

Copyright 2012 America Now. All rights reserved.

 

  • Most Popular StoriesMost Popular StoriesMore>>

  • Exclusive: Photos from Inside Anthony Sowell's Home

    Inside Look: Exclusives Photos Paint Disturbing Scene Inside Home of Anthony Sowell

    Saturday, May 1 2010 11:19 AM EDT2010-05-01 16:19:26 GMT
    GRAPHIC PICTURES: CLEVELAND, OH (WOIO) - It was one of the most gruesome sights in Cleveland crime history.
  • Six deadly foods for dogs

    Six deadly foods for dogs

    Every pet owner knows a dog can get into just about anything around the house. One woman found that out the hard way when her dog ate a bunch of grapes! Turns out, that's one of the most dangerous foods
    Every pet owner knows a dog can get into just about anything around the house. But these common snacks could be fatal for Fido.
  • Physicians warn against giving melatonin to children

    Physicians warn against giving melatonin to children

    Parents desperate to get their troubled sleepers to bed are turning to synthetic melatonin, which is a supplement sold over the counter. But expert warn it could have adverse effects on child development.
    Many adults turn to sleep aids like melatonin, but now more parents are giving them to their kids, too. We talked to physicians to see what they had to say about how it could affect your child's development.
Powered by WorldNow