When Did Lying to Insurance Companies Become OK?

When Did Lying to Insurance Companies Become OK?

I was reading an article in the Insurance Journal this week about people lying to insurance companies. I was shocked to read that between 16% to 33% people, depending on sex and age, lie to the IRS and insurance companies to get lower rates. People lie about their income to get a more favorable loan status. We live in the information age. How stupid do people have to be to lie to companies and the United States government who can access all of the accurate information they wish to access? Do these people believe that no one checks their facts? And the wildest fact in the article is the number of people that think lying to insurance companies is Okay. What has happened to us as a country?

Our declining integrity is a major concern. The dictionary defines integrity as adherence to moral and ethical principles; soundness of moral character, honesty. I believe integrity is doing the right thing when no one else is looking. Has getting our way or winning became so important that cheating is now Okay? We have politicians that make speeches that are recorded, get caught in a lie and the media covers the lie up. We have an ex-football star stab two people to death with DNA evidence set free. We have over 7.2 million married couples with secret bank accounts, so their spouse won’t know about their secret spending. We can’t seem to figure out how to stop a 50% divorce rate. According to a Stanford University study, in 1940 20% of college students admitted to cheating versus today 98% of students admit to cheating. This means only 2% of our next generation of college grads are going to be honest. These are only the statistics from the people that admit cheating or the ones that get caught. What happened to our integrity?

The younger the person, the more apt they are to lie according to the article. Also, men are twice as likely to lie and be okay with it as women. So, God help us with young males between ages 18 to 34, they are our biggest liars and seem to be Okay with it. When the article speaks of lying to an insurance company, they speak about lying about miles driven to receive a lower premium on car insurance or lying about smoking pot to get a more favorable rate on their life insurance. The dumbest person has to be the guy that lies about his income for a loan thinking no one will look at his tax return. This is not 1930, every piece of information in our lives can be accessed online. Maybe we have hit a new low in ignorance as well as lack of integrity.

If you have been guilty of lying to insurance companies, banks or the IRS, please stop. We do have the internet and everything can be verified. Tell the truth, pay your fair share and leave the lying to the politicians.

“If you tell the truth, you don’t have to remember anything”. —Mark Twain

Image by Stuart Miles at www.freedigitalphotos.net


Tim Wilhoit is owner/principal of Your Friend 4 Life Insurance Agency in Nashville, TN. He is a family man, father of 3, grandfather of 1, entrepreneur, insurance agent, life insurance broker, employee benefit specialist, salesman, sales trainer, recruiter, public speaker, blogger, author and team leader with over 29 years of experience in sales and marketing in the insurance and beverage industries.

19 Responses to When Did Lying to Insurance Companies Become OK?

  • Tim, I just had a guy lie to me on a life app about having heart disease. We did a paramed, questionnaire and ordered his medical records. Did he really think we would miss it? Some people are just idiots! Thanks for saying what needed to be said.

  • Tommy, thank you for sharing. We have all been there, too many times.

  • We must honest to ourselves and our company.
    Particularly must honest to our valuable client

  • Siva, very true and the client must be honest with us as well.

  • Hi Tim,

    Thank you for writing this. I think lying is against all principals. I fee that insurance companies have heard it all. I think they cover themselves with tests and investigation. Like when a person dies they need a death certificate.

    I also think insurance companies do it to themselves. A life insurance practice is worth nothing. You do a good job and there is no physical reward.

    Most companies pay a renewal that is nonexistent over time. So when people need a agent. We have no economic interest in the policy.

    What makes the most sense right now is to pay agents a small piece of the cash value.

    Thank you.

    • That is an interesting take Steve. I know that the way life insurance companies structure their commissions, most of them do not make money until late second year or early third year. You may be on to something. Thank you for sharing.

    • Steve there are already policies that pay out a lifetime commission on the cash value but servicing an existing client shouldn’t always be for financial gain. Servicing life insurance clients are what leads to more life insurance clients.

  • Why be in business if the agent is going to fibb?

  • What you conceal will be revealed.

  • Great Post!

  • Great Post!

  • Integrity is foul played wherever there is pressure for gains and success. Young generation are easy victims of competition in every walk of life. Also not to forget learning begins from home. Simplicity is the key.

  • As the saying goes. HONESTY IS THE BEST POLICY. Do business with anyone, with strict observance of honesty, being true to your words and actions, safeguard your reputation and that of the company you’re working with.
    Building a good image counts a lot in selling, especially insurance. We can expect better or best sales, thus living a legacy

  • LOL,Not sure why this is a surprise, We are lied to the moment that were able to have any comprehension of reason as humans beings!! From infants being lied to about religion, storybook fantasies, birds dropping off little brothers and sisters, fat jolly men bringing presents, fairies leaving cash for teeth, etc. Then our education system – like EVERY other Country on the planet teaches (indoctrinates) us to believe what THEY want us to believe…mostly 1/2 truths at best!! The T.V. is full of Corp News Companies that lie to push their agendas, Politicians lying to the masses, Police lying to the judges, Priests lying to their congregations, husbands and wives lying to each other, and it can’t be stopped in the home….it starts in the home, lies, lies, lies!! So why in the world would anybody think twice about lying to an insurance company to save a few bucks. It Truly is a morally bankrupt society and the best a few of us can do is to be so completely transparent and honest in our lives that we stand out above the others – and i feel that putting the stigma on Males age 18-34 is once again….a half truth….the irony!!

  • Scott, please calm down. So much angry in your statement. If you are approaching life with this much repugnance you will never be happy or trust anyone. The point of the blog was not to point out all of our society is morally bankrupt but the ignorance of lying to an insurance company and a government that always verifies the facts. Nobody is checking up on Santa Claus, but they will verify heart disease on a $1,000,000 face amount life insurance policy. It is OK, just breath.

  • Unfortunately, about 2 seconds after Insurance was invented!

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