Can someone with newly diagnosed cancer fool a life insurance company?
I was wondering if someone had just been diagnosed with cancer and had not yet begun treatment, would he/she be able to get it past a life insurance agent and exam in order to get a more reasonable policy?
P.S. I am not looking for comments about the legalities or ethics of doing this, just practicalities.
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Silverbullet December 30th
Unlikely. Even if you initially got it past them, In the event of a claim, they would certainly check medical records and find evidence that the diagnosis was made before the policy was issued.
mbrcatz December 30th
If they die within the first 2-3 years, is it a big deal if the company doesn’t pay out?
Most likely, they’ll get found out, unless you buy one of those low value ‘guaranteed issue no medical exam’ policies.
But if you lie about it on the ap, and "get it past" them, but die of cancer in 18 months, they won’t pay. They don’t have to.
DONALD STEVENS December 30th
Yes you can. If the company does not discover the fraud in the first 2 years and the person dies in 2 years and a day, they have to pay in every state I am aware of. If the person dies in the first two years, they usually get the money that was paid refunded. States are the regulators as to the time period and you can actually ask your insurance commissioner’s office and they will tell you the rules as they are written in your state. The state doesn’t want insurance companies to turn a blind eye for years then not pay a claim when the time comes. It is the dependents who are punished for the fraud of the individual, so most states give insurance companies two years to discover the fraud or they are stuck with that insured. Could bring some bad karma though.
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