What Do People Lie About Most on Life Insurance Applications?

[Brian Anderson]

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?

 

[Newby]

Smoking status is #1

 

[senior-advisor-indiana]

Smoking status is #1

Weight should have made the poll...

 

[pfg1]

Weight should have made the poll...

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.

 

[WinoBlues]

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.

o All of the above

 

[dgoldenz]

Weight should have made the poll...

A little shorter and a little more round...and just a touch of the diabeetus. Doctor says I'm borderline.

 

[NewbieNewbie]

A yes on the borderline diabetic. Also have you been declined before is a big one, and pain meds.

 

[Brian Anderson]

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?

 

[scagnt83]

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.

 

[Newby]

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?

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.