Getting a life insurance policy will involve consumers providing some rather personal information, including their past medical history.
In a recent piece for the GateHouse News Services, John Napolitano, chief executive officer of a Massachusetts wealth management company, noted life insurance companies use medical information bureaus during the process of evaluating an applicant. These services can detect for fraud and also provide risk-management tools to policy providers.
They also keep a record of health issues paid for by insurance companies, making leaving out any information a bad idea for customers.
"The bottom line: Do not omit any medical information regardless of how immaterial that you feel it is," Napolitano wrote.
Not being truthful, even if unintentional, can prove to be disastrous for life insurance holders. It can lead to a policy being canceled or death benefits not being awarded to beneficiaries.
The same holds true for other forms of protection, including auto, health and home insurance policies. Any detection of dishonesty in paperwork will lead to the denial, or revocation, of coverage.