Tell the Truth on Your Insurance Applications (Part I)
I have been fighting insurance companies for almost 20 years and one thing is for sure: honesty and integrity work both ways. If you choose to lie on an application for automobile, life, health or disability insurance, you will probably find yourself without coverage when you need it most. In an effort to reduce premiums, some people grossly misrepresent the facts. With car insurance, a frequent omission involves the failure to disclose all of the potential drivers who are living in the household and might have access to the car. If that person (usually a child) has permission and causes a serious accident involving injuries, the insurance company may deny coverage and the parent may potentially be PERSONALLY liable under a doctrine known as "family purpose". Over the years, I have seen and heard stories of families left financially devastated when someone bought medical or life insurance and failed to disclose relevant past medical history.
Tell the Truth on Your Insurance Applications (Part II)
I can guarantee that after you are gone, the insurance company will investigate the truthfulness of your application and if it finds that you made material misrepresentations, your widowed spouse will be going to some lawyer and the lawyer will have to explain that he/she cannot help you and the children. Be careful out there and for goodness sake, BE HONEST.