Definition - What does Void mean?
When an insurance policy is void, it is no longer legal and, therefore, the power of its provisions, including the benefits the policyholder is supposed to receive, is cancelled. This happens when the insurance company finds out that some of the information provided by the policyholder is false or against proper premium evaluation.
Insuranceopedia explains Void
The insurance business places a very high priority on disclosure. Information given to the insurer is important for determining the appropriate pricing of the policy or its premium. In other words, the insurance company wants truthful information so it can provide the best policy.
But if a policyholder withholds vital information, they risk voiding their policy. A smoker purchasing health insurance, for instance, must tell the insurer about their habit. If they don't disclose it—perhaps out of fear that it will raise their premium payments—they might not get any healthcare provided through the policy if the insurance company voids it after investigating the claim.
Top Reasons to Forgo Mortgage Protection Life Insurance