One of the main factors used to determine your life insurance quotes is your age. Because the probability of your death increases with your age, an insurance company is likely to raise the premiums of your policy as you grow older. As long as you are covered under a term policy, you will keep the same rate. When it comes to the end of your term and you need to renew or get a new policy, it may be tempting to lie about your age to get a lower rate.
Purpose
The only purpose people have for lying about their age when applying for an insurance policy is to save money. However, because your age is tied in to so many aspects of your life, including your social security number, lying about your age and not getting caught isn’t very likely. Therefore, you are taking a big risk just to save a few dollars. In the end, it can end up costing you or your family much more if you are caught in your lie.
Penalties
If you are caught by the insurance company lying about your age, you run the risk of being penalized heavily. The penalty will vary depending on the company you use for your insurance policy. One way you may be penalized is in your premiums. The company may raise your premiums, making you pay more than you would have paid if you had told the truth in the beginning. They may also lower your payout value. Worst case scenario, they may cancel your policy completely.
While it can be temping to lie about your age when getting term life insurance quotes, the risks of getting caught are quite high. In addition, the penalties that you will face aren’t worth the risk. Instead, it is best to be honest when you get your quotes so you can feel confident that your premiums will remain the same and your policy in place.