Why would a death benefit claim be denied if the insured lied about a previous heart condition?

When a death benefit claim is denied due to the insured lying about a previous heart condition, the principle of material misrepresentation is at play. This principle refers to the act of providing false information that is significant enough to influence the insurer's decision to offer coverage or the terms of the policy.

In insurance, it is crucial for the insured to disclose accurate and complete health information, as this relates directly to the risk the insurer is assuming when they provide life insurance. If it is determined that the insured intentionally withheld or falsified information about a serious medical condition like a heart issue, the insurer has grounds to deny the claim. This is because the insurer may have assessed the risk differently had they known the truthful health history, which could potentially change the premiums or even the insurability status of the individual.

This situation underscores the importance of transparency and honesty in the insurance application process, as misrepresentations can lead to significant consequences, including the denial of benefits when claims arise.