Life insurance companies need honest answers to questions about your health to determine appropriate premiums and coverage levels. Some applicants are tempted to leave out or misstate information they don’t see as important — or think will adversely affect their benefits.
Some of the areas people “fudge” on are:
• tobacco or drug use;
• depression;
• tickets for driving under the influence and moving traffic violations;
• cancer history;
• travel to dangerous locations; and
• income.
But insurers do their homework. To verify health and life insurance information, they can access the Medical Information Bureau (https://www.mib.com/facts_about_mib.html). (You can get a free copy of your record upon request.) They may also order a medical exam. Discrepancies between your application and their research could lead to a claim denial, higher premiums or policy cancellation.
Also, if an autopsy reveals application misinformation, the insurer could deny the beneficiaries’ claim.
Fortunately, most applicants tell the truth!
If you’re interested in getting life insurance coverage and are wondering if you’ll qualify for a great premium and great coverage, contact your agent.
Please Contact Us if you have any more questions.