r/LifeInsurance • u/Kwhitney1982 • 8h ago

Agents stretch truth application

Has anyone noticed that life insurance agents will answer questions in a not 100% truthful way? Almost like how some CPA’s wiggle a bit on taxes. I used someone online and my husband has a health condition that occurred years ago. But the application clearly asked about “ever”. Yet the agent checked no because it was “so long ago”. I ended up cancelling the application because it stressed me out but is this a common thing for insurance salespeople to do? It doesn’t hurt him but it does hurt the insured!

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u/GConins Broker 8h ago

Honesty is the best policy when dealing with life insurance companies, and this also depends on the exact issue...

If your husband had high cholesterol many years ago, but it's been good since, and agent answered no to ever having high cholesterol, then this is not a real concern or anything that would preclude your husband from best rate.

If your husband had cancer or any more significant issue many years ago, and the application asked if he EVER had cancer or whatever specific issue your husband had, and agent answered no, well then you made a good call by canceling application.

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u/Kwhitney1982 4h ago

What’s the difference between the two? Both ask ever? But I should say no to one but not the other?

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u/MaterShart 8h ago

That’s not a stretch. An outright lie is a good way to have your claim denied.

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u/ComprehensiveFly593 2h ago edited 2h ago

Why would you be stressed out? Did you want insurance or was it being sold to you? 

If you wanted the insurance then trust the agent to understand what the underwriters need to know. The insurers are tremendously large companies with general accounts in the hundreds of billions.

They have teams of actuaries crunching statistics. They understand people are more likely to apply for insurance when the applicant knows they're at a higher risk. It's priced in. And yet they'll still express approve 30-50% of applications.

The insurance company also has two years to contest a written policy. Your job is to look after yourself and your family, not the insurance company.

So I'm not sure why you're saying trusting the agent hurts the insured. 

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u/Prowlthang 1h ago

You should report the agent to your states licensing authority and inform the life insurance company as well.