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However, even if the life insurance company discovers that you falsified the information that you provided in your application, the life insurance company cannot revoke that policy after the first two years (in some cases three years).
During the first two years of your policy, if the life insurance company discovers that you provided false or incomplete information, they may:
- Pay no benefits to your survivors if you die
After the first few years of the policy, then the life insurance company cannot cancel your policy. However, the insurance company can pay a lower amount to your beneficiaries if your cause of death was directly related to information that you falsely provided. For example, if you didn't tell the life insurance company that you were a smoker and you died of lung cancer, then the insurance company will probably only pay the amount of insurance you would have been able to buy if you were paying the rates for smokers.
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