Life insurance is a good thing to have around, and you know it. However, life insurance premiums can be extremely high, especially if you fall under a high-risk category. You would do everything within your powers to save some cash on your policy, and there are legitimate ways to reduce your premiums. Would you go so far as to lie to your insurance company, though?
The most common lies applicants tell when asking for quotes revolve around their health status. Even if they are avid smokers who never exercise, they will eagerly state that they are perfectly healthy nonsmokers in the hopes of sneaking their way into a cheaper category. They may also try to conceal any family history of heart problems, cancer, or other hereditary diseases that would automatically exclude them from low-premium policies.
Unless you’re applying for a life insurance policy that does not require a medical evaluation -whose premiums are going to be significantly higher anyway-, your insurance company will find out that you’ve been lying. They will not only subject you to thorough physical examination, including tobacco and drugs use tests, but they will also gain access to your personal and family medical records. Therefore, there is no point in lying about your health condition.
Further details life insurance applicants may try to conceal involve income statements, driving violations, and other signs of risky behavior. The less responsible an applicant seems, the higher the premiums of his insurance will be. Of course, these inaccuracies can easily be detected if the insurance company chooses to have a look at the applicant’s credit report or motor vehicle record –and they certainly will if they suspect foul play.
When you try to trick your life insurance company into classifying you as a low-risk client, your lies will eventually catch up with you. You will then be placed in the high-premium category that you deserved in the first place. Worse yet, if you manage to get a cheaper policy based on inaccurate information and your company finds out, they will reduce your death benefit accordingly. If the law in your country permits, the company may also choose to cancel the policy altogether.
If you are desperate for a cheap life policy, you can reduce your insurance cost in less obscure ways. Look for hidden costs and unnecessary riders when you review your contract, and compare quotes both online and offline. Term life policies tend to be cheaper than whole or universal ones, but you don’t want to have to renew your contract too often. Choose a term length that you feel comfortable with to avoid increases in premiums.
Lying to your insurance company in order to get lower premiums is never a good idea. Apart from the embarrassment you will feel once they figure it out, your application may take longer to process than usual. Insurance companies tend to become nitpicky once they find that an applicant has intentionally provided false information. Be honest, and look for legitimate ways to get lower insurance quotes.
Sam Jones the author of this article writes many articles relating to critical illness insurance, to bring his readers all the latest news.