Let’s consider this case. A person is a non-smoker, declares it in term insurance application, gets blood/urine test done and receives the policy. Now after three years, he starts smoking and dies after one year of that. What will happen to the claim?
Or let’s say, he doesn’t become a regular smoker/drinker but just takes a small glass of wine in a party, suffers an accident on the same day and dies. What will happen to the claim?
I understand that if claim is within two years, then the insurer will try it’s best to reject this claim. But what if it happens after four years? Can insurer prove that policyholder was a smoker/drinker even at the time of taking that policy? Can insurer still prove that it was a suppressed fact or fraudulent statement?