Take the case of Peter. Peter just got a new job and one of his benefits include life insurance. While filling out the forms, he stops at the question which asks if he’s a smoker. Although he doesn’t smoke on a regular basis, Peter does light up when he’s drinking at the bar with his friends. Since he believes this doesn’t make him a smoker, Peter checks no for the question.
A few years later, Peter has a heart attack while at home. He is rushed to the hospital but unfortunately, Peter does not survive. The doctors determine that the heart attack was caused by Peter’s lifestyle – eating too many fatty foods, not exercising, and the occasional beer and cigarette combo. When the life insurance company learns that tobacco use played a part in Peter’s death, it refuses to pay out the policy to Peter’s family because of insurance fraud.
Even if you don’t smoke on a daily basis, just one cigarette on a rare occasion will make you a smoker in the eyes of the insurance company. If the insurance company learns that you lied about smoking on your policy, it can sue you for lost premiums or even try to penalize you for insurance fraud. So even if you have to deal with a much higher premium, it’s best to be honest and tell the insurance company that you’re a smoker.
We hope you enjoyed our series on insurance fraud. If you have any scenarios similar to the ones that we described, you may need to speak with a lawyer. Contact the Law Offices of Anthony Carbone today for a free consultation.