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Why do people think that they can lie to insurance companies?
Posted on 10/20/16 at 12:37 pm
Posted on 10/20/16 at 12:37 pm
I've been selling life insurance and financial products for almost 14 years now. I have my own private brokerage. I receive residuals from over $6 Million in annual life premiums from individual client plans alone, throw in group premiums (residuals for those suck btw) and it's almost $30 Million. And I am still amazed at how many people are willing to blatantly lie to an insurance company.
So I drive to client's place of business to enroll him in a life insurance product and set up a mutual fund account for his Roth IRA.
As I pull into the parking lot I see the guy finishing a cigarette. I've never met him before so he doesn't know that I saw him. I meet him inside.
Now every life insurance application has a question about tobacco use, and I asked him "Have you used tobacco products within the last 24 months". I already knew what he was going to say, and of course, he lied to me.
This puts me in a shitty position because I now have a legal obligation to inform him that I witnessed him smoking 15 minutes ago and that it if he knowingly provides false information to an insurance company, he is guilty of a crime.
He'd likely never be prosecuted, but the company would not pay his claim so the only person he'd be fricking is himself and his family.
Why do people think that they can outsmart a life insurance company? Even if I hadn't seen him smoking, the insurance company will know if he's lying simply by checking the MIB. It's a TRILLION DOLLAR INDUSTRY FOR frick'S SAKE, they are not stupid.
/ rant
So I drive to client's place of business to enroll him in a life insurance product and set up a mutual fund account for his Roth IRA.
As I pull into the parking lot I see the guy finishing a cigarette. I've never met him before so he doesn't know that I saw him. I meet him inside.
Now every life insurance application has a question about tobacco use, and I asked him "Have you used tobacco products within the last 24 months". I already knew what he was going to say, and of course, he lied to me.
This puts me in a shitty position because I now have a legal obligation to inform him that I witnessed him smoking 15 minutes ago and that it if he knowingly provides false information to an insurance company, he is guilty of a crime.
He'd likely never be prosecuted, but the company would not pay his claim so the only person he'd be fricking is himself and his family.
Why do people think that they can outsmart a life insurance company? Even if I hadn't seen him smoking, the insurance company will know if he's lying simply by checking the MIB. It's a TRILLION DOLLAR INDUSTRY FOR frick'S SAKE, they are not stupid.
/ rant
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Posted on 10/20/16 at 12:41 pm to Vols&Shaft83
do you not test for tobacco use in blood or urine test?
I am on the contents side and people lie to me all the time, while I know they are. I just laugh and continue on
I am on the contents side and people lie to me all the time, while I know they are. I just laugh and continue on
Posted on 10/20/16 at 12:56 pm to Vols&Shaft83
Because being a smoker means a higher rate. Duh.
Good to know about the MIB, I will stop lying for my wife.
Good to know about the MIB, I will stop lying for my wife.
Posted on 10/20/16 at 12:56 pm to NYCAuburn
quote:
do you not test for tobacco use in blood or urine test?
Depends on the amount of coverage they're applying for. We'll defer to the MIB usually unless they're applying for $250K or more.
Posted on 10/20/16 at 12:57 pm to NYCAuburn
Seems like they did a mouth swab when I got my life insurance policy. But I think I did have to piss in a cup though. Can't remember.
I did answer no to the tobacco question, even though it had been within a year that I had had a cigarette. I don't remember the question being 24 months though. Seems like it was 12 months, and it had been 11 months since I had one, but I may be wrong.
I did answer no to the tobacco question, even though it had been within a year that I had had a cigarette. I don't remember the question being 24 months though. Seems like it was 12 months, and it had been 11 months since I had one, but I may be wrong.
Posted on 10/20/16 at 12:59 pm to The Spleen
This is exactly why I don't want weed to be legal sometimes.
Posted on 10/20/16 at 1:00 pm to The Spleen
quote:
. I don't remember the question being 24 months though. Seems like it was 12 months
Some are 12, 24, or as much as 72. Depends on the company and product.
Posted on 10/20/16 at 1:04 pm to Vols&Shaft83
Dude is a fricking idiot 
Posted on 10/20/16 at 1:06 pm to cardboardboxer
quote:
This is exactly why I don't want weed to be legal sometimes.
Everyone lies on the narcotics question. Pot is Schedule 1, which is retarded. But unless you have failed a piss test at some point in your life or have it documented by a doctor that you have used narcotics, we have no way to prove whether you used a narcotic or not.
Posted on 10/20/16 at 1:06 pm to Vols&Shaft83
It's really hard, because I'm sure you want to help people but they make it impossible when they try to lie to you.
Posted on 10/20/16 at 1:10 pm to StrawsDrawnAtRandom
quote:
t's really hard, because I'm sure you want to help people but they make it impossible when they try to lie to you.
Exactly. And if I was a young inexperienced agent desperate for a commission, I might have let him lie to me and his family would suffer when it was time to file a claim.
Posted on 10/20/16 at 1:14 pm to Vols&Shaft83
So how exactly do they find out about the lie?
Posted on 10/20/16 at 1:19 pm to NYCAuburn
quote:
I am on the contents side
like property and casualty?
Posted on 10/20/16 at 1:25 pm to cardboardboxer
quote:
So how exactly do they find out about the lie?
Medical records is the easiest way. Or an autopsy report. The MIB is so precise it can tell you when you last took a shite.
OK, maybe not that precise. But you get the idea.
Posted on 10/20/16 at 1:28 pm to Vols&Shaft83
Lets say I did lie, is there any way to get out of it without causing even more trouble? New company? "oops my bad?"
Thank you for the information by the way.
Thank you for the information by the way.
Posted on 10/20/16 at 1:36 pm to cardboardboxer
Yeah, cancel the policy and start another one with another company. You don't want to volunteer that you were dishonest on the application to the company you are with now.
If it's a whole life policy (which I'm not a fan of), see if you can get some of the cash value by surrendering the policy early. You may be able to recoup a fraction of premiums you've already paid.
If it's a whole life policy (which I'm not a fan of), see if you can get some of the cash value by surrendering the policy early. You may be able to recoup a fraction of premiums you've already paid.
This post was edited on 10/20/16 at 1:41 pm
Posted on 10/20/16 at 1:39 pm to Vols&Shaft83
Yeah I won't do another whole life after I lost money on the last one. It was just a term.
Is there an amount of coverage you recommend?
Is there an amount of coverage you recommend?
Posted on 10/20/16 at 1:43 pm to cardboardboxer
3x your annual gross income or more is what I recommend. Same for your wife. Don't just get enough to pay off the mortgage, that's usually not enough.
Posted on 10/20/16 at 1:44 pm to cardboardboxer
quote:
Yeah I won't do another whole life after I lost money on the last one.
Unless it's on an infant, Whole Life is a shitty bargain.
Posted on 10/20/16 at 1:44 pm to Vols&Shaft83
Holy crap, if that is true I am way undercovered. I didn't even think about the mortgage.
Thank you for the advice!
Thank you for the advice!
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