I forgot to add, in reference to your question of how much do you need to disclose, thats a personal choice for americans that said i do know of some situations where because of lack of disclosure the life insurance policy's become invalid (its a small print disclaimer where under certain circumstances the policy will become null and void)

for me I do a full disclosure, that way I can be assured that when I die (lets face it everyone dies at some point) my wife and children will be taken care of.