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People lying on life insurance applications
04 September 2008
A new report has shown that due to the current economic climate an increasing number of people are lying on their life insurance applications.
Research by AXA revealed that one in 14 people who have taken out insurance have knowingly misled insurers when completing application forms in order to save money during the credit crunch.
Health and lifestyle habits are often hidden from insurers as almost one in ten people do not disclose their smoking habits, while 25 per cent of men understate their alcohol consumption.
Iain Mallon, head of protection at AXA said: "Insurers are not looking for reasons not to pay out. Our business is designed to support people not constrain claims.
"However, quite simply if your insurer finds out you have deliberately not disclosed relevant information, they may not be obliged to pay out the full amount."
AXA discovered that 25 per cent of the British population incorrectly believe that they will face premium increases if they are honest about lifestyle habits or medical conditions.
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