What should you do if you may have given inaccurate information to your life insurer?
You should know that your mistake or omission has a good chance of being discovered. Despite being the most common form of attempted deception, smokers are unlikely to fool insurers. Life insurance policyholders who gave wrong information on smoking should return the life insurance policy to the agent and correct any mistakes before it is too late.
Most life insurance companies consult with, and contribute to, the Medical Information Bureau (MIB) which contains coded information that other insurers may refer to before considering a new life insurance application. Although there is no single shared database of flagged offenders, most life insurance firms now have access to personal history information held by the Insurance Services Office which supplies data and what it describes as 'decision support services' to the industry.
When it comes to practical advice for anybody who may have given false information industry experts agree: honesty is the best policy. Speaking to your insurer is a good start and telling them everything is vital. Often an insurer will simply adjust rates and cover in accordance with any new information. An expert points out that even high profile offenders, like smokers, may have to do no more than alter the content of their cover and make the necessary back payments.
Tags: life insurance