The last time you filled out a job application, did you maybe stretch the truth a little about your responsibilities? A lot of people do it to make a better impression on a potential employer, but you better not do it on an application for life insurance!
According to Steven Weisbart, an economist for the Insurance Information Institute, dozens of claims for benefits are denied to grieving families each year because the deceased had failed to disclose something to the insurance company. Among the most common lies: failing to disclose tobacco use.
Because premiums offered to those who admit to tobacco use are often triple those of people who don't smoke, some may be tempted to lie to get a better rate, but the effort often backfires on them. "There are so many opportunities to get caught," says Byron Udell, founder and CEO of AccuQuote, www.accuquote.com a Web-based company that offers free online insurance quotes.
He points out that before the policy is issued, your medical records will be reviewed and you'll be subjected to blood and urine specimen tests. If you lie and get caught before the policy is even issued, you will have a red-mark against you in the insurance industry. Meaning - you were denied coverage because you lied therefore it will show up in your medical history that you were denied coverage so companies may hold that against you.
"Even if you are skilled enough to fool the blood tests by abstaining for enough days to clear your blood of nicotine, if the policy gets issued, you subsequently die within a few years, and they find out you lied, all your family will be entitled to is a refund of the premiums you paid."
Instead of the $1 million dollars you thought you were leaving your family to pay off the mortgage, put the kids through college, and leave your spouse with financial security, they may end up with only a couple of thousand dollars. Just enough to pay for the funeral and a few assorted bills.
"The insurance company has a right to know the person they are insuring. The prices are so low these days for competitive term life insurance, that there's really no reason to play games. If you lie, you're playing with fire," says Udell.
AccuQuote works with insurance companies who will issue policies to tobacco smokers, people with health problems, and those with dangerous jobs or hobbies. To get free quotes from several companies willing to extend you coverage, log on to www.accuquote.com and fill out their simple online form. You'll get back quotes from several different companies in a matter of seconds. If you like the numbers that come back, you can click on the quote for instructions on how to obtain a policy. An AccuQuote agent will act as your liason with the company you select.
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