The necessity of being truthful on healthcare applications
When you are applying for health insurance it is sometimes
tempting to provide answers to questions that will make us
look better to an insurance company and which may lower our
premium. While fudging or outright lying on an insurance application
may not seem serious at the moment you are doing it, the truth
is that falsifying an insurance application is a breach of
federal law and potentially carries severe penalties.
But aside from the legal ramifications, if your insurance
company finds that you have lied on your application, such
as saying that you do not use tobacco when you do, your insurance
company WILL find that out and when they do your claims will
be denied and you will get no refund of the premiums you have
What this means is, your lying will have cost you potentially
quite a bit of money and gained you absolutely nothing.
When you are buying health insurance you will need to schedule
a lot of time for it, and be prepared to answer a lot of questions
about your lifestyle, your financial situation and goals,
and about your past and current health.
Before meeting with your agent it is a good idea to ask if
he or she recommends that you bring a personal financial statement.
Even if you are only buying health insurance your agent may
need an idea of your financial situation so he or she can
judge what deductibles would be acceptable and what maximum
yearly out-of-pocket expenses you could reasonably absorb
as well as several other health insurance options.
Expect to answer a lot of questions not only about your medical
condition and your health history, but you’ll be asked
about your family’s health history as well. You’ll
also be asked about your current lifestyle choices, such as
alcohol and tobacco use and the use of any illegal drugs.
It is possible that you may be asked to have a medical examination.
Don’t believe that you’re smarter that the insurance
company and that you can scam the company by lying on an application.
Chances are you will be caught, and if you are caught telling
falsehoods, then your claim may be denied. If your claim is
denied what will you then do?
The best defense when filing any medical insurance claim
is the simple truth.