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What Will Happen If You Lie On A Life Insurance?

Published On Jul 17, 2021 12:00 PM By Shrida Gulati

Lying on a life insurance policy can be one of the expensive mistakes. Before purchasing the life insurance insurance policy one is required to fill the proposal form/application and provide it to the life insurance company. 

In the application or proposal form one must provide personal information such as health, career, finances etc. this way the insurance company can estimate the risk the person poses. It is very necessary to be truthful on the proposal form and avoid the urge of getting better premium rates by hiding or lying about certain facts. 

If an applicant lies on a proposal form he/she may bear serious consequences. One of the main reasons it is advised not to lie on the life insurance proposal form is to avoid the chances of claim rejection as a consequence of lying. 

Below mentioned are some repercussions of lying on a life insurance policy. 

Possible Repercussions of Lying on a Life Insurance 

Below mentioned are some consequences you may face if you lie on a life insurance:

1. Claim Rejection

Claim rejection is the worst outcome of lying on a life insurance policy. After the life assured has passed away during the policy term and the life insurance provider realises that the policyholder has lied on the life insurance policy, the nominee could be denied with death benefit payout. In case the insurance company finds out that the life assured withheld a medical issue, the insurance can reject the claim. 

2. Emendation in Premium Rates

In case the life assured withheld a medical issue while filling the proposal form in urge to get low premium rates and the insurance provider comes to find out about it, the premium rates may be revised. The premium rates may be amended in a way which reflects the addition of the excluded health condition.

3. Enquiry

In case many errors and discrepancies are found in the proposal form or policy the insurance company may begin investigation. Upon investigating if the company discovers any undisclosed medical condition, the company may prevent the applicant from applying for a life insurance policy for a certain period of time.

4. Termination of Policy

In some cases where discrepancies and fraudulent are found the insurance company may terminate the policy as it is. The policyholder will not be able to avail any benefits if the policy is terminated as a consequence of lying on the life insurance. 


The purpose of purchasing life insurance is to provide financial security to your loved one in your absence. By lying or withholding some facts which should be mentioned to the insurance provider, you could put yourself and your family at risk in difficult times. Unforeseen demise of the life assured and denial to the claim can lead to an emotional turmoil. Repercussions of lying on a life insurance policy are never good for anybody. It is advised to always be truthful to avoid the above mentioned possible circumstances. 

Also read - Reasons You Need To Purchase Life Insurance

Know Which Factors Which Affect Premium Calculation 

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.    

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