The age helps determine the premiums payable, while the income is used to ascertain the level of coverage that can be extended. In life insurance, the proposal form will require details like age, income and occupation. The form seeks all relevant information from the applicant that helps the insurer in underwriting. What is Life Insurance Proposal Form?Ī proposal form is a legal document that has to be filled out by the applicant so that the insurance company understands the individual well. Now, before we look at the outcome of lying on the application, let us quickly understand the meaning and importance of the proposal form. If it is found that an applicant has lied on the form, he or she might have to bear serious consequences. However, it is most essential to be truthful. It may seem tempting to withhold certain facts or even lie on the proposal form to paint the applicant in a better picture. These details are used by the company to determine how much of a risk an individual will pose. The applicant will need to share certain information pertaining to his finances, health, and career, among other things.
Prior to availing a life insurance cover, an individual has to complete an application with the insurance provider. Lying is never okay on a life insurance application form.
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