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What Will Happen If You Lie On A Life Insurance Proposal Form?

When you purchase a life insurance policy, you must fill an application form and submit it to the insurance provider. It is a mandatory requirement, and it allows the insurer to get your personal and finance-related details. Based on the details you provide, the insurer determines the premium amount.

What Happens If You Lie?

Let us look at the possible repercussions you could face if you are found guilty of lying in the life insurance proposal.

  • If you are found guilty of deliberately lying about your health condition in your application form to get the policy at a lower premium, the insurance company will immediately revise it to reflect the inclusion that was omitted earlier.

  • If there are multiple discrepancies and you have lied about serious issues, the insurer may reject the application and prevent you from applying for a policy for a certain duration.

  • The worst possible scenario of lying in a life insurance application form is the denial of claim payment. In the event of your demise, if the insurance company finds out that you had not disclosed certain facts or distorted the truth, the nominee will be denied the sum assured. This can be devastating for the family while they are already in grief, and it beats the whole purpose of buying an insurance policy.

Imagine a situation where your family members face financial hardships because of your false information in the application form. Remember, a life insurance policy is a legal contract between you and the insurance company. And like all legal contracts, if you are found guilty of not disclosing material facts, that may enhance the level of risk, it will have serious repercussions.


To avoid such a situation, it is better to swear by the mantra, ‘honesty is the best policy’ when it comes to applying for a life insurance policy. Thus, it can be concluded that lying in the insurance application form is never good. It is better to disclose all the information honestly and pay a higher premium than leaving your family vulnerable without financial cover in your absence.

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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