How far will insurance companies go to track down family information abroad?

TaylorR

New Member
2
Hypothetical scenario: Middle age male immigrant from Eastern Europe looking for term life insurance. He is considering not revealing that his father died of lung cancer being just a few years older than he is now. Father was smoker. Our friend doesn't smoke at all and is otherwise in good health. He is afraid that family history will dramatically affect insurance rates if he gets insurance at all. So, putting moral and ethical issues aside, to what degree will insurance company track down family history? He's interested to get fully underwritten 10 or 20 years term.
 
He can lie on the application all he wants and then hope that he survives the first two years until the policy becomes incontestable.

However, if he dies within the first two years, the life insurance company will conduct a contestibability investigation. Life insurance companies don't send amateurs to do it, they hire professional investigators who will turn over every rock until the last bit of evidence is uncovered. I know. I was one of those investigators for several years and I was very good at turning over the rocks.

When the lie is uncovered it is then determined if the lie (or concealment) was material to the underwriting of the policy. If it was material then the claim gets denied, the policy rescinded to inception and the premiums returned to the beneficiary.

Trust me, somebody will know that the insured's father died of lung cancer. Something like that always comes out.

Bottom line: NEVER lie to an insurance company.
 
I can almost guarantee it is on his medical history somewhere. Every single one I have ever seen asks about family history.

Also, generally it only has to be material to the underwriting, it does not have to relate to the actual cause of death. He could die in an accident and still have the policy rescinded over it.

Also, his father having lung cancer is the difference between preferred and standard, it won't keep him from getting a term policy in the slightest. There are many other factors that could make him a standard risk versus preferred anyway.

In fact, depending the age at which his father died and his age now, he might still be eligible for preferred with some companies. So he is risking it all for nothing. Because if you lied one, they will assume you lied again and keep hunting until they find something.
 
Thank you for your response. Would you be able to recommend an insurance company or broker (licensed in ky) for 10-20 years term 49 year old otherwise healthy male (with history :)), let's say $500K. Thanks
 
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