Life insurance non-disclosure

CapedCrusader

Hi folks,

Hypothetical scenario:

• Ample level term life cover in place - taken out years ago - no pre existing conditions
  
• Going for new mortgage - pre existing medical condition exists. Mortgage protection cover is mandatory.
  
• New mortgage is in a different country, so level term policy cannot be used as mortgage protection.

Solution: Take out cheapest mandatory mortgage protection policy and omit to declare pre-existing conditions - understanding full well that policy may not pay out. Family is still protected by ample, separate level term cover taken out years ago.

Are there any flaws in this thinking? Is the worst that can happen re non-disclosure that your policy doesn't pay out?

The only downside is that if holder died soon after taking out mortgage due to a pre-existing, the family wouldn't be covered to the extent originally intended.

Thanks in advance.

BuffyBot

have a read of the forum charter. There is a very apt part about dishonest dealing (even "hypothetically")