What Happens If You Lie About Smoking On A Life Insurance Application?
Whether you tell a lie on purpose, or by accident, or misrepresent the facts in any way on a Life Insurance application, you are gambling that the Insurance Company won’t find out and you may lose that gamble. The Life Insurance Companies have 2 years from the effective date of the policy to do their homework. This contractual clause of the life insurance policy is called the 2 year contestability clause. The insurance company, with your signed approval to examine your MIB (medical information Bureau) information, will confirm your current medicines, past medicines and even request information directly from your doctor about certain conditions that you may have forgotten to mention or for clarification.
What happens if you lie can be simple and also drastic. If the Insurance Company finds any misrepresentation then the full death benefit will not be paid. At best all of the premiums will be returned with interest. When the question is asked about if or when you last smoked - the answer must be correct. Many questions include patches, gum and other forms of nicotine or smoking. It is best to answer honestly and possibly be penalized for the truth than it is to be dishonest and hope you don’t get caught.
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