Insurance policies aim to protect people from financial losses in case they encounter medical emergencies. However, some individuals tend to hide crucial health information, often to avoid paying higher premiums or to maintain their status quo.

Unfortunately, several people don’t realize that making such claims can lead to insurance cancellation. In this article, we’ll explore why falsely claiming that you don’t get sick can result in insurance cancellation.

What is insurance cancellation?

Insurance cancellation is the termination of an insurance policy before its term expires. Insurance providers cancel policies due to various reasons, such as non-payment of premiums, fraudulent activities, or breach of policy terms.

It means that you lose all the benefits of the policy. The cancellation of an insurance policy can affect your ability to get insured in the future and also impact your credit score.

Is it common for individuals to claim that they don’t get sick in their insurance application?

Yes, some people claim that they don’t get sick in their insurance application.

In fact, it’s a common deceitful practice because they believe that disclosing medical history would result in increased premiums or the denial of their insurance application. Sometimes individuals may believe that they’re healthy based on self-diagnosis, which may not be true.

While some people may have genuine reasons to hide their medical history, it’s crucial to understand that lying about health conditions is highly risky.

Why is it important to be transparent in insurance applications?

Being transparent in your insurance application is vital. Apart from being a legal requirement, it ensures that you get the right coverage that meets your needs.

Insurance providers use the information provided to assess your risk factor in insuring you, and they will update the policy premium based on the risk assessment. Claims or coverage may be denied in case of a breach for lack of transparency.

Why does claiming you don’t get sick lead to insurance cancellation?

Plainly speaking, claiming that you don’t get sick is a false claim that can get detected. Contrarily, the goal of buying insurance is to have your medical bills paid for in case of illness.

Insurance providers closely investigate policy applications, primarily to prevent fraudulent claims. The moment any inconsistencies are detected in your records or claims, there could be a potential for cancellation.

Can insurance providers detect deceit?

Insurance providers can detect deceit. They have the power to investigate your medical history and records to validate the information you provide.

Most providers require applicants to undergo medical tests before the policy’s approval, and any information that doesn’t match the result may be considered fraudulent. Additionally, providers take note of any conflicting statements concerning medical history, and any such claims made on the application can be flagged for further review.

What are the consequences of hiding health information?

Hiding critical health information can have several consequences. Firstly, it can lead to the denial of claims.

Insurance providers may deny coverage or claims when they detect an inconsistency or proof of unacceptable health history post the issuance of policy. Secondly, it can lead to insurance cancellation. The insurance company can terminate your policy for presenting false information. Thirdly, hiding health information can lead to legal consequences.

In case of legal disputes that arise, failure to provide accurate information can lead to legal implications and settlements.

What should you do instead?

The best option is to be honest with your insurance provider. If you have a pre-existing medical condition, declare it in the application. Disclosing your medical history to your insurer will ensure that your coverage is tailored to your needs.

Being transparent in the information you offer protects you from any legal and financial consequences that arise in the future.

What happens next if you have already made a false claim?

If you have already made a false claim, the best you can do is to come out clean and report the mistake or oversight to the insurance provider as soon as possible.

Be clear on the fact that your statement is incorrect and that you will be happy to rectify it. The provider will appreciate your honesty and review the situation. While it might lead to increased premiums or penalties, it may be more beneficial than outright cancellation of the policy.

Conclusion

Insurance policy transparency is critical. Claiming that you don’t get sick is a risky move that can cause insurance cancellation.

It’s essential to be truthful while filling out your application form and provide accurate information during the claims process. While the temptation to save money by withholding information may seem attractive – it’s important to realize that you run the risk of loosing your coverage and hurting your credit score.