Lying on a life insurance application is generally viewed as a very bad idea. If you lie about your medical history, medications, or certain lifestyle habits such as smoking, you can be found guilty of misrepresentation, and your claim can be denied, and your beneficiaries left with little or nothing. If you lie about anything on your application, and the insurance company discovers it while you are still living, the policy may be adjusted, or cancelled, and in some states you may be charged with insurance fraud.