When applying for life insurance, it is important for the insurer to learn as much as possible prior to taking on a client.
This is because the insurer is essentially taking a big risk with each applicant that they approve, in terms of the amount they could potentially have to pay out.
To learn more about a potential policyholder, providers ask several questions on a life insurance application.
Here’s what to expect.
Standard Life Insurance Application Questions
Life insurance applications typically include the following basic questions:
- Name
- Address
- Phone Number
- Gender
- Date of Birth
- Place of Birth
- U.S. Citizenship
- Social Security Number
- Driver’s License Number
- Occupation
- Name of Employer
- Tobacco Use
- Policy Owner Name (if different from proposed insured)
Coverage Options & Other Policy Questions
The life insurance application will also have questions regarding the type of coverage that is being applied for.
For example, common questions can include the amount of death benefit, as well as the length of coverage (if applying for term insurance).
In addition, many life insurance policies will also include various riders that can be added at the time of application, such as a waiver of premium or an accidental death benefit rider. If this is the case, these riders will also be noted on the policy application.
Who Are The Policy Beneficiaries?
There will also be a place on the application for coverage to list who will be the policy beneficiary.
Here, you can list the primary beneficiary or beneficiaries, as well as the contingent beneficiary or beneficiaries.
In most cases, there will also be a question on the application asking to list all life insurance that is either currently in force or pending.
Questions for High Risk Applicants
Most life insurance applications will also include more detailed questions about your health history, such as a history of cancer and other potential risk factors.
You will be asked a list of questions about various ailments, and whether or not you have had or been treated for them.
You Can Still Get Coverage with a Medical Condition
Answering ‘Yes’ to these questions may preclude an applicant from getting the best rates or getting approved. However, there are other options today that are available.
These come in the form of “graded benefit or guaranteed issue” life insurance. With these alternate life insurance plans, the application contains only a few short health-related questions – and as the name implies, no medical exam.
While the premium on these policies is usually more than for a comparable, medically-underwritten policy, they can provide you with coverage in a “last resort” situation.
What to Expect After You’ve Applied for Coverage
In most cases, life insurance policies that are traditionally underwritten will require you to take a medical exam in addition to your completing your paper application.
This will consist of a licensed health care professional, meeting with you to discuss your and your family’s medical history, inquiring about any prescription medication that you take, as well as to perform certain other medical tests.
Medical Exams Typically Include:
- Taking your blood pressure
- Listening to your heartbeat and pulse
- Checking your height and weight
- Obtaining a blood and urine sample
- Discussing your habits such as smoking, exercise, foreign travel, and/or high-risk hobbies such as skydiving or rock climbing
Depending on the amount of coverage and/or your age, some additional testing such as getting an EKG may be required. Your doctor’s records may be requested as well.
The Life Insurance Underwriting Process
Once all of your information has been compiled, the insurance underwriters will be able to review everything and make a much more informed decision regarding your overall health condition.
This will allow the underwriters to determine how much risk you present to the insurer should they take you on as a policyholder. It will also help them in determining the amount of premium to charge for your policy in order to compensate for that amount of risk.
Prepare for Life Insurance Application Questions
If you are ready to apply for life insurance coverage for you and your family, you’ll want to be prepared for the questions asked on the application.
You may also want to obtain a lower life insurance premium rate by reducing any risky activities, exercising regularly, and taking part in a healthier overall lifestyle.
For more information on how to find the best life insurance option for you call us to speak with an insurance professional who has access to many insurers and can help you to find the policy and the premium that fits into your specific coverage and budget parameters.
You can also compare rates right on this page using our instant quote tool.
Call us today for a quote at 1-800-712-8519.
