Can a Life Insurance Company refuse to pay death benefits if the policyholder knowingly provides false information?
Yes, a life assurance policy is generally invalid if the policyholder knowingly provides false information to the insurance company and dies within two (2) years of receiving the policy. However, the false information has to be ‘material’ to the decision at the point of issue the policy. Hence, mistakenly providing the wrong address will not invalidate a policy, but not disclosing a pre-existing medical condition could.
