What will an insurer do if it learns that an applicant misstated his or her age on a life insurance application? Buster Brow knowingly tells the insurer his age is 28 when he is actually 38. What effect will this lie have on his insurance contract? What action should the insurer take if the misstatement is found out after Buster dies?
There are certain facts in life which must be disclosed to the person you are consulting frankly. For example - your doctor who knows about every internal part of your body and mind. To avail best services/treatment you tell the doctor frankly about your ailments and the causes you believe led to it. You are chain smoker, or heavy drinker - an alcoholic, you are very likely to have cancer or lever problems.
In the similar vein you must disclose every relevant to the insurance consultant and seek his advice which policy you should go for.
In the present day of fast and furious life it is prudent and important to make provision for self as well as the dependent family members in the event of any unforeseen eventuality. There must be some way to fall back upon on the happening of such an incident.
Buster Brow decided to take the insurance policy for this day. But the very purpose of it is defeated when he gives false information about the correct age knowingly. The Insurer will not be liable to entertain the claim and it can avoid the contract. Insurance is said to be a matter of utmost faith hence the insurer must have complete and true information about the insured. It will enable the insurer have an idea about the risk it is taking by providing the policy and decide about the premium ...
"Truth always prevails". It must be borne in mind when buying an insurance policy as it affects your own as well that of your dependents. A minor mistake - made knowingly or unknowingly renders the contract of policy null and void and you are deprived of an opportunity to fall back upon in future when you need it badly. Life insurance policy - as we know- involves a contingency plan.
It is better to consultant freely with insurance company agent/representative putting before him all your mental doubts and seek his help as to which policy is best for you.