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What would happen if you applied for life insurance and made a false statement on the application?

For instance, if you said you didn't have a pre-existing medical condition when actually you did. I currently have a Life Insurance policy that has been in effect for about 30yrs. But I wasn't truthful when I applied. What is likely to happen upon my death?

Public Comments

1. Well if you die for this reason then the person you have on your life insurance will not get the money. Even if you don't die from this medical condition and they find out you lied--same thing. Best case scenerio, they will not find out. You could probably go to jail or have a fine for knowingly lying on your application.
2. You would probably have a problem when it came to a claim, and then there would be an insurance fraud claim again you by the insurance company to which you gave false information. Or simply upon death, the claim may not be paid out, neither will any of the premiums paid over the years refunded, and your bonuses and surpluses will probably be forfeited.
3. Nothing will happen. The insurer had two years to cancel the contract for your fraud and the statute of limitations for criminal fraud has almost certainly run out in your state. Read your contract. They will pay it without issue.
4. No need to worry. The insurance company has 2 years to find out that you lie and cancel you policy. After 2 years you are in the clear.