When a claim is made an insurer will obtain medical records and check that answers to medical questions given on an application were correct. If a deliberate lie was detected, then this could result in the policy not paying out the full sum assured or only paying out a proportionate sum assured.
For example, if you say you are a non-smoker but your medical records show you were a smoker at the time of the application, the insurer will calculate what premiums you should have been making on the policy and then work out the sum assured which will be paid out based on the actual premiums you paid.
If however, you stated your had no medical disclosures at the time of application but you were recently diagnosed with cancer for example, this would have meant that cover would not have been possible at the time. Therefore the insurer would not pay out the sum assured but may refund you the premiums paid.
If you want the short answer the definite answer is no. If for any reason your fraudulent life insurance application goes undetected but you die in the first 2 years of the policy going live, the insurance company can review the application that was made.
If you get caught lying on your application, you won’t get covered and the findings will be shared with other insurance companies and brokers. So, you will have ruined any chance of being insured at all. You can be prosecuted for fraud so honesty is always the best policy. It won’t be just you that loses out if your policy doesn’t pay out, it will also be your family.
Declined for Legal Reasons
Life insurance is highly regulated, so applications can be turned down because a risk is too great to take on and for genuine legal reasons. If you have a high chance of dying or if your lifestyle habits are very high risk, it can be more difficult to obtain life cover.
More Reasons for Denying Life Insurance Cover
- Perhaps you have been requested to attend a life insurance medical exam. If a condition is discovered, the insurer may require you to prove that you can manage your condition successfully before agreeing to start life cover.
- Regarding age, there are minimum and maximum basic age requirements with insurers. Age requirements can vary from one life insurance product to another. Separate insurance can be taken out if you are over or under a certain age, for example: there are insurers that focus on people over a certain age and children.
- If you try to apply for an exceptionally high death benefit, you could be rejected if the value far outweighs your current income.
- Applying to insure someone else can present it’s own difficulties, because failure to prove that you would suffer a loss financially if that person were to die, your application would not be approved.
- Some insurers just won’t provide cover if you have a pre-existing (before you make the application) medical condition. For instance if you have heart disease, uncontrolled diabetes or cancer.
- If you already have cover in place an insurer might reject your application.
Life insurance application rejected?
You can still get a life insurance policy if you have been rejected by an insurer. Much will depend on why you were rejected and it doesn’t mean you shouldn’t give up. A UK life insurance broker like Prime Financial Solutions and Mortgages Ltd will search the whole of the market for you.
To prevent further life insurance application rejections, approach an FCA regulated life insurance broker who will source the best possible policy for you to consider.
Prime Financial Solutions and Mortgages Ltd
Prime can help you when you need help with Life Insurance and any of the following, Contact us – 01942 665 436:
- Life Insurance
- Critical Illness Cover
- Income Protection
- First Time Buyers
- House Purchases
- Self Employed and Contractors
- Self Build
- Buy to Let
PRIME FINANCIAL SOLUTIONS AND MORTGAGES LTD – SIMPLY THE BEST LIFE INSURANCE AND MORTGAGE BROKER IN WIGAN & THE UK
Setting up a life insurance policy is complex and can be a very stressful time. At Prime you always have an exceptional FCA approved team of life insurance & mortgage specialists with you supporting you on your journey. We provide excellent one to one services tailor made to your own individual needs and we make your time with us hassle free – we do all the heavy lifting for you leaving no stone unturned. Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive on a regular basis from customers in Wigan, Greater Manchester and the rest of the UK, on Trust Pilot and online.
Perhaps you have questions you would like answers to? Like, What can Prime do? How to get your free Life Insurance Quote? Our dedicated team of FCA experienced experts is here to help.
Life Insurance is the simplest, most popular and best way to ensure that your family is taken care of in the event of your death. You can find out more about us here and if you need help with Life Insurance and Mortgages, Prime can 100% help. Click here to Get a Life Insurance Quote or use our quick contact form. You can telephone our friendly dedicated team 01942 665 436