Clearsurance’s Overview of the Life Insurance Application Process
Most people do not think about applying for life insurance. Even though it is an important step to take, for some it’s the last thing on their minds. Having a life insurance policy could help you family with financial stability if you pass away.
Applying and trying to understand life insurance policies can be overwhelming, which is why we created a guide to help make the process easier for you. You will find comfort in knowing you are doing something to protect your family if anything ever happens to you.
The Life Insurance Application Process
Depending on the policy you choose, every application process will look different. However, you can always expect that you will have to give some information on your medical history and any current medical conditions. This is one of the most important factors that life insurers will consider when determining rates.
When you are in the application process, you will be asked to answer questions regarding your finances, income, weight, and personal habits.
Make sure to avoid lying when it comes to these questions. Some people may be tempted to lie to appear healthier, but this will ultimately cause problems down the line that could affect your ability to receive benefits or even get coverage at all.
The medical exam process for your life insurance application is very similar to the basic annual physical exam you go through each year. Answering all the questions asked and disclosing any previous procedures and family medical history is important.
If medical professionals deem them necessary due to your case and medical health or the specific policy requirements, you may be asked to go through more tests
You want to make sure you do everything you are asked so as not to seem like you are hiding something.
Clearsurance suggests doing the exam on a day you are feeling both mentally and physically well. This will make the exam process go smoothly and allow you to feel your best when answering questions.
What types of questions will you be asked?
Questions when applying for life insurance tend to be regarding your
- Tobacco use
- Recreational drug use (including marijuana)
- Frequency of alcohol use
- Current weight and weight gain
- Exercise and activity habits
- Past medical procedures
- Past diagnoses
- Family medical history
You should expect to be asked questions about your traveling habits as insurance companies view frequent travelers as high risk. Be ready for questions about future traveling — either for work or pleasure. You can even expect questions about any ties you might have in other countries, including business or property, as this might make you travel abroad.
You will also be asked questions regarding your finances. These may include questions about your income, other insurances, debt, bankruptcies, and dependents.
Lastly, insurance companies will ask questions about your criminal history, citizenship status, any convictions, place of birth, and Social Security number. While these are the most common questions, this is not the whole list of questions you could be asked about.
Considerations When Applying for Life Insurance
You need to consider how much monetary value you supply to your family and how much money they will need if something happens to you. You will need to consider how much they will need each year and for how many years they would depend on this financial benefit.
There is also the option for no medical exam life insurance. This would allow you to get a life insurance policy without having to take a medical exam. Make sure to weigh your policy options.
The Length of the Application Process
As you move along through the process, your questions and concerns should be discussed and answered. It could take your insurance company several weeks to review your information and make sure that it is completely accurate. You will have to sign an agreement to ensure that the information you provided is accurate.
If your insurance company decides more testing is needed, your application process could take much longer. This sometimes happens when there are medical concerns found in your exam. No medical exam policy options are much faster.
After all the information you have provided is checked for accuracy and your tests are completed, you can expect your policy to start within a short time. You will be covered for life or for a set time period depending on the plan you have selected.
Read our full article here for more valuable information about applying for life insurance: Everything You Need to Know About Applying for Life Insurance.