I have been a life insurance broker for quite a while now. I have interacted with new parents, young professionals and families. They genuinely believed that leaving out a detail or softening the truth on their application is not a big deal. Their intention is not to commit fraud. They were trying to protect themselves to get lower premiums and faster approvals.
Personal questions about your health, habits and history are not exactly dinner-table topics.
But here’s the hard truth:
Lying on your life insurance application almost always costs you more in the long run.
Let me explain why.
Why Honesty Matters More Than You Think
Life insurance is built on trust. When you apply, the insurance company makes a promise. They assure that if something happens to you, they will pay your loved ones. In return, they expect honest answers so they can price the policy fairly.
Which makes sense, right?
Many people don’t realize this fact. Insurance companies do not fully verify all aspects at the beginning of the application. They verify it at the time of claim. And that is when they uncover the truth and deny the claim.
This means you can get approved. You will pay lower premiums for years. You will feel completely secure. Unfortunately, this lasts only until your family needs the policy most.
That’s when every detail on your application gets reviewed.
A Real Example I will Never Forget
Few years ago, I worked with a young dad in his mid 30s with two small kids. He wanted life insurance to protect his family. Exactly what he was supposed to do.
During the application, he downplayed his smoking history. He said he had quit years ago. In reality, he still smoked socially — not every day, just “once in a while.” He did not think it mattered.
He application was approved as a non-smoker which means lower premiums – that is what he wanted. He was happy.
Two years later, he passed away unexpectedly.
When the claim was submitted, the insurance company requested medical records, pharmacy history and even toxicology reports. They found nicotine in his system. Then they looked back at the application.
Result?
The claim was delayed and reduced. His family eventually received a payout. However, it was not the full amount they were counting on. They received it only after months of stress, paperwork and emotional exhaustion.
I still think about his spouse sitting across from me, asking, “Why is this happening now?”
Common Things People Lie About (and Why They Shouldn’t)
Most lies aren’t dramatic. These are small, quiet omissions. Sometimes we don’t even remember things and ignore or not remember.
Here are the big ones which can impact the claims:
1. Smoking and Vaping
“Social smoking.”
“Only on weekends.”
“Just vaping, not cigarettes.”
Insurers care about nicotine, not labels. If it is in your body, it counts.
2. Weight and Health
Shedding a few pounds.
Forgetting to mention high blood pressure.
Ignoring that anxiety medication from two years ago.
Just keep in mind that medical records lists all details even if you forget.
3. Alcohol and Cannabis Use
People often underestimate how often they drink or use cannabis. Doctors’ notes and prescriptions tell a clearer story than memory.
4. Family Medical History
“Yes, my dad had a heart issue… but he’s fine now.”
Family history matters because it affects risk and not because of anyone judging you.
“But Won’t Honesty Make My Insurance More Expensive?”
The simple answer is – yes but sometime and not always.
But here’s what, I feel, most people do not understand:
An honest policy that costs a little more is anytime better than a cheaper policy that does not pay.
Also, honesty does not always mean higher premiums. There are plenty of cases where clients expected bad news and ended up with good one.
And even when premiums are higher, we can often:
- Adjust coverage amounts
- Choose different policy types
- Revisit the policy later when health improves
You have options — but only if the policy is built on truth.
The Two-Year Rule You Should Know About
In Canada, most life insurance policies include a contestability period, usually the first two years.
During this time:
- The insurer can investigate misstatements which includes data of birth, sex, smoking, etc..
- Claims can be denied if information was incorrect
But here is the kicker.
Some misrepresentations can affect claims even after two years. This is especially true if they’re considered material. Material misrepresentations mean they would have changed the insurer’s decision.
Translation: hoping time will “wash away” a lie is a risky bet.
“I don’t work for the insurance company — but I do know how they think.”
My job isn’t to help you “get away with” anything. My job is to help make sure your policy actually works when your family needs it.
That means:
- We talk through uncomfortable questions
- Clarify grey areas before submitting an application
- We document explanations properly
Honesty doesn’t mean oversharing — it means sharing accurate information.
This Is About Peace of Mind And Not Perfection
No one needs to be in perfect health to get life insurance.
You don’t need a flawless history.
You don’t need to be embarrassed about past choices.
Just to be genuine in your application.
Life insurance isn’t for you, it’s for the people you care about. The integrity of your application is part of how you protect them.
Key Takeaways
- Lying or omitting details on a life insurance application can delay, reduce, or deny a future claim
- Insurance companies verify information at claim time, not just at approval
- Small “harmless” omissions can have big consequences
- Honest applications create stronger, more reliable coverage
- Peace of mind comes from knowing your policy will work when it matters most
A Final Thought
If you already have life insurance, take a moment to consider:
- Was I fully honest while filling my application?
- Are there details I brushed past because they felt minor?
This isn’t about fear or guilt. It’s all about awareness. If you find anything which you believe was not disclosed, speak to your advisor. If something does not reflect right, your advisor should help and correct this in the application.
Life insurance is one of the most meaningful promises you’ll ever make to your family. Make sure it is built on solid ground. When the time comes, nothing matters more than knowing that promise will be kept.