What Happens When You Lie On A Life Insurance Application? 
Many things could happen from lieing on a life insurance application . Depending on when the lie is found out about . Reprecusions could be as minor as having the application denied to as severe as criminal prosecution . If the lie is discovered after the death of the insured the the death benefit would more than likely not be paid by the carrier ; the most that the carrier wouldtypicallybe responsible to pay under these circumstances would be the total premium paid in over the lifetime of the policy . If the policy death benefit had been paid already then the carrier will typically request the amount paid back -LRB- possibly less the total premiums paid -RRB- and then may seek criminal procescution . It is best to be as honest as possible during the application process as there is lot of information that is checked and double checked with many sources . 