Selling Insurance When You Suspect Your Client Is Lying

Sylvia Gordon
Sep 4, 2018 · 4 min read

One of the hardest parts of being an insurance agent is having clients lie to my face. “Sir, have you used tobacco products in any form in the past 12 months?” Client who smells like smoke, has stained fingernails, and a pack of cigarettes in his shirt pock, “No.” “Sir, if you are found not to have told the truth, the company can refund your premiums and deny your claim.” Client just shrugs.

Smokers pay more for every type of insurance, even car policies!

So what do you do? Ethically, if the agent suspects the client is being untruthful, she should alert the insurance company to the fact and walk away from the sale.

Whether you are an underwriter for an insurance company or someone dating online, we all know that women lie about their weight and men lie about their height — and we know the jig is up on the first date, and the insurance company can check medical records for an accurate weight.

It’s awkward, especially when the client is a family member or friend, to call them out when you suspect they are not telling the truth.

People need to know there are many ways to verify the prescriptions they receive, the doctors they see, the notes in their charts, their DUI history, and much more. Technology has made it easy to verify an application, so clients have been known to seek out doctors who — for a fee — won’t put the treatment notes into their computer and thereby keep it “secret.”

Have you had internal cancer in the past 5 years? This gets tricky because most people don’t know the exact date they are discharged from care and it matters for insurance. You can and should call your doctor’s office and see what is in your chart. It is the difference between being accepted or declined for insurance coverage and guessing is always at your peril. If you think you won by getting the policy issued, you might find out that you have no coverage when your cancer comes back and the insurance company goes looking in your records!

The insurance company is not the villian. Yes, there are 20/20 and 60 Minutes episodes that showcase the terrible behavior of a few companies that fight to deny claims but that is the exception, not the rule.

The basic premise that we as a society won’t come to terms with is this: Insurance companies are in business to MAKE MONEY. They are not government or not for profit organizations. Like our system or hate it, these are the rules. Your local insurance professional is just a cog in the mighty wheel. Don’t drag her down and jeopardize her career by misstating the facts.

In general, Insurance companies can’t make money on sick people. Hence the failure of Obamacare. When insurance companies are not allowed to manage risk, they can’t make money and they stop selling plans.

When you make a misrepresentation on your application you are setting yourself up for disaster down the line.

Our company trains insurance agents in all 50 states. We also sell to clients locally. Clients lie. Don’t be shocked about this because I’d bet that YOU lie to your insurance agent, too.

Men lie about their height.

Women lie about their weight.

This is almost a universal truth and usually doesn’t matter too much. When you buy life insurance, they measure and weigh you. They test your urine and blood…and then you, the client get angry at us, the insurance agent, because you get rated up to a higher price than what we quoted you because the blood and urine DOESN’T LIE. You did.

Turns out, while you might not smoke everyday, you are a smoker. Sure, it’s only “when I drink” or “when I bowl” or “when I go out with the guys after work” but you lied and now you will pay a lot more for your insurance.

Think about getting as clean and healthy as possible before applying for life insurance. Take 30–60 days and the lower premiums will be your thanks for years to come. Every pound you lose may put you into a lower price class, and of course if you can alter your high salt and fat diet, that can pay off, too.


Sylvia Gordon, JD is the President of Gordon Marketing, a family business that sells all types of personal insurance. Call her office for a free consultation 800–388–8342 if you would like advice on how to get better rates when you apply for insurance.

Sylvia Gordon

Written by

President of Gordon Marketing, one of the nation’s largest insurance FMOs. Dedicated to independent Medicare, Life & Health agents in all 50 states.

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