Pseudo claims in your life insurance application will not only void your claims but can also lead to several lawsuits in the future. So before you start fooling your insurance company, it is best to know the consequences of the lies you plan to incorporate in your life insurance policy.

The written law
According to the law, anyone who knowingly and intentionally files an insurance application which contains fraudulent and misleading information is subject to criminal and civil penalties. The amount in dollars for the penalty may vary from state to state and greatly depends on the severity of the lies and deception contained in an application.

Common lies contained in life insurance application forms
One of the most common lies that policyholders place on their life insurance application forms has something to do with their health condition. Some of these lies include denying being a smoker or alcoholic in the past. Some people intentionally avoid placing the current medications they take while others simply believe that hazardous sports like rock climbing, flying and parachuting are irrelevant information to be highlighted in their application.

Two Types of False Information contained in a Life Insurance Application
Material Fact
This type of misstatement affects the entire effectiveness of your application. This is considered intentional fraud because it involves deliberate omission or deception of pertinent and important information that can greatly affect your policy. The insurance policy has the right to void it and simply return the amount of the premium which you have earlier paid. Worst case may be a criminal suit sent at your doorstep because of your lies. Otherwise it can simply be revoked.

Non-Material Fact
This can easily be fixed because it only involves accidental misspelling in the last name or middle name of the applicant. It does very little in affecting your policy. The process of canceling and voiding your policy because of fraudulent information like listing a false nationality on your application

Misrepresentation
The burden of providing proof of representation is on the shoulders of the surety company. They must clearly show that you intentionally lied in the application about your personality. Although some may argue that it is an innocent mistake on their part, a lie is still a lie and you need to pay the consequence of your shortcoming.

Materiality
The surety company should also prove to court that the lie in your application increases your risk of loss thus greatly affecting your policy. You should know the stringent effect of lying on your nationality.

If you do not wish to be bothered by any of these things, then it would be best that you supply only true information when you sign-up for any type of application may it be an insurance policy or just any form for record purposes. Some insurance company offer specific insurance policies for non-U.S. residents. It may be more expensive and may not be as comprehensive as those offered to U.S. citizens but this is the best they can offer to interested Non-U.S. buyers of their policy.