When a misrepresentation on a life insurance policy application is discovered, the action that an insurance company may take is decreasing term rider.
Why taking the action of term rider?
To temporarily raise your death benefit for a predetermined period of time, you can add a term life insurance rider to a permanent life insurance policy.
Applicants that intentionally distort information with the purpose to deceive or commit fraud. If the insurance company proves that the insured intended to deceive by providing wrong information on the application, it can invoke a policy rescission beyond a two-year incontestable period.
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