What Do People Lie About Most on Life Insurance Applications?

Jun 21, 2016

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In your experience, what do people lie about most on life insurance applications?

  1. Tobacco use

    38 vote(s)
    51.4%
  2. Marijuana use

    13 vote(s)
    17.6%
  3. Mental health problems

    6 vote(s)
    8.1%
  4. Income

    5 vote(s)
    6.8%
  5. Family health history

    9 vote(s)
    12.2%
  6. Something else

    3 vote(s)
    4.1%
  1. Brian Anderson
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    Brian Anderson Executive Editor

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    Some 16% of U.S. adults in a survey say lying to a life insurer to save money is “acceptable” under certain circumstances, according to a recent NerdWallet report.

    People may think they can get away with what in their mind might be a “little white lie,” thinking they can save money with lower premiums. But of course, lying on an app and having it discovered during the two-year contestability period could cost beneficiaries the entire policy payout.

    But the subject got me to wondering what people tend to lie about most. Hence this new poll question:

    In your experience, what do people lie about most on life insurance applications?
     
  2. Newby
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    Newby Guru

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    Smoking status is #1
     
    Newby, Jun 21, 2016
    #2
  3. senior-advisor-indiana
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    senior-advisor-indiana Guru

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    Weight should have made the poll...
     
  4. pfg1
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    pfg1 Guru

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    I agree.

    And I'd say smoking and weight are probably the two area's that folks are least likely to tell the whole truth.
     
    pfg1, Jun 21, 2016
    #4
  5. WinoBlues
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    WinoBlues Guru

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    o All of the above
     
  6. dgoldenz
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    dgoldenz Moderator Moderator

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    A little shorter and a little more round...and just a touch of the diabeetus. Doctor says I'm borderline.
     
    dgoldenz, Jun 21, 2016
    #6
  7. NewbieNewbie
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    NewbieNewbie Super Genius

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    A yes on the borderline diabetic. Also have you been declined before is a big one, and pain meds.
     
    Last edited: Jun 22, 2016
  8. Brian Anderson
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    Brian Anderson Executive Editor

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    Agree - should have had weight as an answer instead of just going with the NerdWallet choices.

    Was also curious about good ways to discourage applicants from fudging on answers. How do you convince people that it really is best to answer honestly?
     
  9. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    In my experience weight and medications are the top things they lie about.

    As far as answering honestly, I just tell them that if they lie the paramed will give the carrier the correct info anyway. And if they lie, the rates I have quoted them already will be incorrect. So they are only wasting everyone's time and hurting themselves if they lie.
     
    scagnt83, Jun 22, 2016
    #9
  10. Newby
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    Start by reading them the fraud warning. Then set the tone that insurance fraud is serious and stupid to try. But crooked agents will assist you with it because they will still get paid and be long gone when it gets discovered.
     
    Newby, Jun 22, 2016
    #10
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