Life insurance lies can come back to bite

Lying is never worth the risk when it comes to insurance. Insurance companies have sophisticated ways of uncovering the truth. Here are some of the biggest lies told on life insurance aplications.

Trying to get a lower rate for life insurance by lying about your lifestyle or health is not likely to work, and could come back to bite you. Life insurance companies use a variety of tools to verify the accuracy of your application: motor vehicle reports, doctor records, pharmaceutical database searches, and credit reports — just to name a few.

Even upon death, previous lies could be exposed. Life insurers can request an autopsy report if they suspect fraud on your original application.

Your application becomes part of the legal life insurance contract upon signing it. What does that mean exactly? Lies and misrepresentations could lead to a reduced death benefit amount, or your policy could be rescinded. Why take that chance? Tell the truth. Peace of mind guaranteed.