5615mike once bubbled...
Everyone listen up............you lie about anything on a life app and your beneficiary will get nothing.....period.
Varies state to state, but usually a "lie" is not the issue. The issue is whether any false statement rises to the level of a material misrepresentation.
On John Q. Public's Life insurance application
Q. Have you had any surgery in the last five years?
A. No.
Turns out that John Q. Public actually had a torn ACL and had knee surgery to correct that 4 years and 10 months ago. His answer was not true. It may have even intentiaonally been a lie. It may be that John thought that his surgery was more than 5 years ago and he honestly believed he was telling the truth.
Unless the insurer can legitimately argue that the information would have resulted in the policy not being written or in the policy being rated, this lie is irrelevant and the policy would have to pay. The state insurance commisson can help decide if any misrepresentations rise to the level of a "material misrepresentation."
That said, do not lie on any insurance application. But do not worry that your faulty memory will automatically result in your family being denied the proceeds of your life insurance.
There is a way to cover yourself to an extent. Answer questions such as above with "Not to my recollection. Please verify with Dr. Jones for dates of past surgery."