What If I Lie on My Life Assurance Application?
- 21 hours ago
- 3 min read
When you go to fill out a life assurance application, the amount of information required can feel overwhelming. There are questions about your family medical history, your lifestyle, your hobbies, and events that happened years ago.
At Citywide Financial in Dublin, we often speak with clients who worry about how minor details affect their policies. A common question we get is "What happens if I leave something out on my application form?"
The short answer is simple - it can ruin your financial safety net. However, the reality behind "lying" on an insurance form is rarely malicious or intentional.
Forgot to Tell? The Difference Between Lying and Forgetting
When people think of insurance fraud, they picture someone intentionally hiding a major medical diagnosis to get a cheaper premium. In reality, most inaccuracies on life assurance applications are completely accidental.
You might not be trying to cheat the system. Instead, you might simply have:
· Forgotten a detail: You forgot about a minor overnight hospital stay from eight years ago.
· Guessed a metric: You estimated your weight or blood pressure readings instead of checking your actual reading.
· Misunderstood the question: You didn't realise that "occasional social smoking" still counts as being a smoker to an underwriter.
· Overlooked family history: You missed a detail about a relative’s medical history because you simply didn't know it.
Under Irish insurance law, there is a distinct difference between innocent misrepresentation and fraudulent non-disclosure. However, even an honest mistake can cause major headaches down the line. Insurance companies rely on "utmost good faith" which means that they expect total honesty, and you expect them to pay out when the time comes to put in a claim.
The true danger of an inaccurate application does not usually appear when you buy the policy. It appears when your family needs to make a claim.
When a policyholder passes away, the insurance company conducts a thorough review. They will look at medical records, doctor notes, and post-mortem details. If they discover information that was withheld or altered during the application process, several things can happen
· The Claim is fully Rejected: If the hidden information was severe (e.g. a serious heart condition or a cancer diagnosis), the insurer can declare the policy null and void and unfortunately your family will receive nothing.
· The Payout is Reduced: If you accidentally understated your weight or forgot a minor condition, the insurer might calculate what premium you should have been paying. They may reduce the final payout to your family proportionally.
· Premiums are Kept: In cases of deliberate, fraudulent concealment, the insurance company is legally entitled to cancel the policy and keep all the premiums you paid over the years.
Imagine paying into a policy for 15 years, believing your family is protected, only for them to be left with nothing because of a forgotten medical note. This is a devastating and avoidable outcome.
What Should You Do Next If You Realise You Left Out Some Details On Your Current Life Assurance Application?
If you are reading this and realise you left out some key details on your current life assurance policy, there is no need to panic. You can fix it.
1. Review Your Original Application
Ask your broker or insurance provider for a copy of your original application details. Review it carefully against your medical history.
2. Notify Your Broker Immediately
If you spot an error or a missed detail, contact your broker right away. This process is called "disclosing a material fact."
3. Update the Underwriter
We will submit the correct information to the insurance company on your behalf. The insurer will re-evaluate the risk. In some cases, your premium might rise slightly, or a specific exclusion might be added. However, you will have peace of mind in knowing that the policy is valid and will pay out when your family needs it most.
Honesty is the Best Policy
When it comes to protecting your family's future, guesswork is dangerous. It is always better to over disclose information and let the insurance underwriter decide if it matters, rather than keeping quiet and risking your entire safety net.
Do you want to review your existing life assurance policy to ensure your family is fully protected? Contact the team at Citywide Financial Solutions today for a comprehensive review.
01 5138710
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