Applying for life insurance involves more than filling out a form. Insurers base their decisions on a detailed risk analysis, using personal information you provide—everything from your medical history to your lifestyle choices—to determine your eligibility, premium rate, and coverage limits. That’s why accuracy during the application process is critical.
Unfortunately, some applicants withhold or misrepresent facts to qualify for better rates or larger death benefits. But doing so comes with serious consequences—not for the policyholder, but for the loved ones left behind. If you need life insurance claim help in Nevada call us.
What Is a Material Misrepresentation in Life Insurance?
A material misrepresentation is a false or omitted statement on a life insurance application that the insurer believes would have altered the policy’s terms—or prevented its issuance entirely—had the truth been known. These aren’t minor clerical errors. They are facts deemed significant enough to affect the insurer’s risk assessment.
Common examples of material misrepresentation include:
Failing to disclose a major medical condition, such as diabetes, cancer, or a recent hospitalization
Misstating your age to qualify for a lower premium bracket
Concealing high-risk activities, like scuba diving, skydiving, or frequent overseas travel to dangerous regions
Not reporting a history of alcohol abuse or drug use, even if it occurred years ago
Even if the misrepresentation was unintentional, the insurer may still use it to deny a claim—especially if the death occurs within the policy’s contestability period, typically the first two years.
What Happens When a Misstatement Is Discovered?
If the insured dies and the insurance company suspects that the application wasn’t truthful, they can delay or deny the claim while conducting an investigation. This process may include reviewing medical records, prescription drug histories, or even financial and lifestyle documentation.
If the insurer determines that a material misstatement was made, they may:
Rescind the policy (as if it never existed)
Deny the death benefit, leaving beneficiaries with nothing
Return only the paid premiums, minus administrative fees
For a family expecting a six- or seven-figure payout, this can be financially devastating—especially when funeral expenses, debts, or ongoing living costs were counting on that coverage.
Example: A man with undiagnosed high blood pressure failed to report minor chest discomfort before applying for life insurance. When he died from a heart attack 11 months later, the insurer denied the claim, stating that the omission was material and should have triggered further underwriting. His family received only the return of premiums.
Why Honesty on a Life Insurance Application Is So Important
Life insurance is not just a personal investment—it’s a contract of trust between the insured and the insurer. When you misstate or omit key information, you undermine that trust, and it’s your beneficiaries who may suffer the consequences.
While it may be tempting to leave out details that could raise your premium, the long-term risk outweighs any short-term savings. Insurance companies use highly sophisticated methods to uncover inconsistencies during the claims process, especially during the contestability window. Being transparent from the start ensures that your loved ones won’t face a denial later.
Denied Due to Material Misrepresentation? You Still Have Options
Even if a claim has been denied due to an alleged misrepresentation, you may still be able to fight back. Insurers often misclassify what counts as “material,” or they may deny claims based on irrelevant or inaccurately interpreted information.
Our experienced life insurance denial attorneys can:
Review the full application and claim file
Determine if the misstatement truly impacted the underwriting decision
Challenge the insurer’s interpretation of policy language
Submit a detailed legal appeal to overturn the denial
We’ve helped countless families recover full life insurance benefits—even after the insurer alleged misrepresentation or policy fraud.
Contact a Life Insurance Denial Attorney Today
If your claim has been denied due to a supposed material misstatement—or for any other reason—you don’t have to accept the insurer’s decision as final. Our attorneys specialize in life insurance litigation and have a long track record of challenging wrongful denials.
Schedule a free consultation today to learn how we can help. We work on a contingency basis, so you pay nothing unless we recover for you. Let us fight for the benefits your loved one intended to leave behind.