Things To Expect When Applying For Life Insurance
In applying for a life
insurance plan, you should be very careful, to tell the truth, to enable your
insurer to determine the best approach to certain cases otherwise, your
beneficiaries may be denied certain privileges if the information you provided
happens to be false. Most insurance companies might require you to answer some
medical questions and undertake some medical exams for proper assessment. There
are “No-exam” policies, but they cost more and the values or benefits attached
are very low.
Determining the best
life insurance coverage
Permanent life insurance
and term life insurance are the two main types of life insurance. Permanent
life insurance provides coverage for your entire life while term life insurance
provides coverage for a specified period. You should discuss your options with
your insurance advisor to determine the best coverage for you.
Before purchasing a life
insurance plan, you need to first determine how much your beneficiaries will
need to offset bills after you die this will help determine your coverage
amount. Also, consider how much you have through personal earnings or group
insurance (such as policy offered by employers).
Your life insurance
coverage is dependent on several factors which include the age of your
dependents, the earning ability of your spouse or next of kin, debts incurred,
and your financial capacity.
Some medical questions
on a life insurance form
In applying for life
insurance, there are basic medical information you are expected to provide such
as your name, address, and employer. Other required information are:
Height
Weight
Date of birth
Lifestyle habits (i.e.,
smoking, drinking, exercise)
Financial information,
including your annual income and net worth
Issues about telling
lies in filling life insurance forms are very common. It might be very tempting
to tell lies during your application, but this can affect your loved ones in
the future if your claims are found to be false. If your insurance company
discovers that you lied about a health condition or lifestyle, it can increase
your premium, cancel your policy, or even deny a beneficiary's claim to the
death benefit. So you need to be careful about the information you give out.
The no-exam life
insurances are usually very expensive and have lower benefit coverage compared
to the ones that require a medical exam.
Life insurance medical
exam
It solely depends on the
approach your insurance company decides to undertake, but most insurance
companies require an in-person test. A paramedical is arranged to meet you at a
place of your convenience which can be your home, office, or a selected clinic.
The paramedical is
likely to do the following during the medical exam:
Take your medical
history (including medical conditions, surgeries, and any prescription
medications)
Ask about your immediate
family's medical history
Take your blood pressure
Listen to your heartbeat
Check your height and
weight
Draw a blood sample from
you
Get a urine sample from
you
Ask about your lifestyle
habits that could affect your health (e.g. exercise, smoking, drinking,
recreational drug use, frequent travel, high-risk hobbies)
More medical can be
conducted depending on your age, the amount of coverage you are applying for,
and the type of policy you want. Once you are done with your medical exams, the
insurance company will review your form and decide whether to approve or deny
your request to purchase a coverage. If you lied about any medical condition,
the insurance company may not only deny you coverage but may also
"red-flag" you, meaning other insurers will know you were denied
coverage because you lied and may not offer any chance of purchasing coverage
from their company.
What to do if coverage
is denied
If the insurance company
declines your offer because you failed the medical exams, there are just a few
options left for you to explore. You can try to purchase a no-exam insurance
plan or go for a group term life insurance which usually requires no medical
examination. If you get approved based on terms of poor medical but you are not
comfortable with the rate, you can go on with the plan and asked to be
re-examined at a future date to improve your health before that time.
Ways to reduce life
insurance premium
There are certain
factors that are irreversible as it affects your insurance premium. Factors
such as age, family medical history cannot be reversed but a lot can be done on
the issue of lifestyle to help reduce your insurance premium.
Quit smoking: smoking
increases your chance of contracting chronic lung diseases leading to death
which is not very ideal for any insurance company. Non-smokers stand the chance
of living longer, meaning the life insurance company will have more years to
collect premium payments before having to pay out on the policy when you die.
Lose weight: exercise
regularly to keep fit. Weight loss often leads to a lower risk of developing
chronic diseases like diabetes, lowers cholesterol levels, and blood pressure.
All of these improves your chances of getting better insurance coverage with a
low premium.
Reduce or eliminate your
alcohol intake: Drinking less alcohol, or stopping entirely, makes you less of
a risk for the company and therefore you'll be likely rewarded with a lower
premium. Alcohol intake can pose a potential health risk and lower your chances
of getting a suitable insurance plan. Life insurance companies will check your
application, driving record, and medical exam to determine your drinking
habits.
Improve your driving:
work your driving skills and adhere to roads signs. Insurance companies can
hike your premium if you have multiple moving violations.
Getting a proper understanding of the process of obtaining life insurance will guide you towards getting the best coverage at the best possible rate. your thoughts and ideas on the issue of life insurance are welcomed. you can leave a comment below
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