Material Misrepresentation

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Should I lie to get better life insurance rates?

Material Misrepresentation

It's one thing to log on to an online quoting system with the goal of getting the best life insurance rates, but it's quite another to mislead the insurance company regarding your actual health. You're required to answer a few questions about yourself when you use online systems to find the best life insurance rates. If you answer these questions truthfully, you can get an accurate idea of what your rates might be (subject to underwriting). If you're dishonest, not only will your rate quote be inaccurate, but you also run the risk of getting a policy that won't pay out in the event of your death.

Life insurance policies will not pay out a benefit if they find material misrepresentation on the application for insurance after the death of the insured. Material misrepresentation is a purposeful lie or omission intended to alter the results of your underwriting. While the normal life insurance contestability period (the time that they're allowed to decline claims) is 2 years, in the event of material misrepresentation, there's no time limit. This means that if you misrepresent your health, your family might get nothing but a return of premiums upon your death.



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