The Dangers of Misrepresenting Health in a Permanent Life Insurance Application

Applying for Permanent Life Insurance requires full disclosure of the applicant’s medical history. Misrepresenting or withholding health information on the application is considered **material misrepresentation** and can have severe, lasting consequences for the policy and its beneficiaries.

The Contestability Period

All life insurance policies include a **Contestability Period** (typically the first two years). If the insured dies within this period, the insurer has the right to investigate the claim. If they find evidence that the insured materially misrepresented their health (e.g., failed to disclose a serious heart condition), the insurer can:

• **Deny the Claim:** Refuse to pay the death benefit.
• **Rescind the Contract:** Void the policy and return only the premiums paid (minus any outstanding loans).

Consequences After Two Years

Even after the contestability period, fraud (intentional, extreme misrepresentation) can still lead to a denial of the claim. Furthermore, any discovered misrepresentation may lead the insurer to retroactively increase the premium or reduce the policy’s face amount.

Disclaimer: This content is for informational purposes only and is not financial or legal advice. Always disclose all health information accurately on the application to ensure the policy and its benefits are legally guaranteed.