life insurance gym membership
Insurance companies have warned their customers about the dangers of lying on their insurance application forms. Has come to light that millions of people are in danger of having your life insurance policies canceled due to lie about their health status.
Insurance companies tend to give cheaper premiums for people who can prove they are healthier and live a healthy lifestyle.
For some examples of companies reduce premiums for policyholders who buy food healthy, while others lower rates for policy holders with a gym membership.
In the last days of life insurance companies have offered new incentives such as reduced rates for nonsmokers, and customers do not use drugs or drink less.
For customers who are classified as a non smoker who had quit smoking for more than 12 months, this saves them £ 2,016 a year.
This has led to clients with health problems to lie about their health status to obtain cheaper rates. A new study 1 in 20 people are in their insurance application forms. A study of Provident friend showed that 90% of people always tell the truth on applications for insurance, however, a 5% admitted to lying on application forms. While fifth some people do not read the terms and conditions of a policy to purchase insurance.
Another study conducted by Norwich Union found that 1 in 14 customers he lied about his health and lifestyle to apply for life insurance. This has caused insurance companies to demand from customers to prove their health status or risk that their policies canceled, payment of higher premiums or their applications refused. Half of the approximately 5,000 customers who wrote that answer again to lying and admitted that their policies could make invalid.
Lying on the policies of your life insurance could end up in personal and financial disaster according to Ian Durrell of insurance only, "Smokers who declare they have abandoned, but continue to smoke no matter how seldom pays if nothing die of smoking-related condition, the policy simply do not pay and their beneficiaries will be the losers. "
"The smokers to pay twice the price of critical illness coverage to a non-smoker – not a beneficial situation for the smoker, nicotine addiction is adjusting both his heart and purse strings, "concluded Mr. Durrell
Also things like having your life insurance policy to pay your mortgage and other debts when the breadwinner of the family dies could be taken away if you lie on their application forms.
Many insurance companies may be writing to customers to ask for proof of their health status and found that lying can be forced to pay higher premiums or have their policies canceled all together. Currently companies insurance reject 25% of claims due to misinformation.
How life insurance is there to protect and provide comfort, so when make one a good idea to research and seek advice first. And to avoid disappointment when it comes to making a claim, read the terms and conditions carefully and clearly and answer the questions truthfully.
About the Author:
Elfy is an author of several articles pertaining to Life Insurance. She is known for her expertise on the subject and on other Business and Finance related articles.
Article Source: ArticlesBase.com – Policy Holders Urged to Refrain From Lying on Life Insurance Forms
