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.
Check out some of our most recently answered questions. We are always here to help!
Let’s take a look at what may need to happen if a stay at home spouse died. You can never put a price on a loved one. However, you can put a price on the work that person did while alive.
It has been said that the amount of money needed to employ someone 40 hours a week with benefits to clean, cook, do laundry, care for children and shop for food is way over $35,000 a year. Stay at home spouses work more than 40 hours a week and more...more
I’m nervous about purchasing a Final Expense Life Insurance plan, please tell me what to expect at our appointment.
First and foremost your Life Insurance plan must address your particular situation, needs and budget. What you choose has to be affordable this month, next month and next year so your plan will remain in force to help your family or fulfill whatever purpose you have in mind.
We can meet at our...more
AARP is a membership group where you pay a fee every year to be a member. As a member they offer many things including products to members by other companies. The Group Term Life Insurance product in New York is offered by a New York Insurance company and is offered to AARP members, I just want to point out that this Term Life Insurance is not actually from AARP. It is an AARP branded product provided by a separate entity.
Know someone who could benefit from this question and answer? Click on one of the sharing icons below to share it with them!