Knowing what to expect when applying for life insurance is important. When you want to purchase life insurance, you must apply and qualify before taking any other step. During this process, you must take a medical exam, fill out paperwork, and submit your and your family’s health history. The lower the risks insurance companies detect, the lower your premiums will be.
Understanding the process of getting a life insurance policy can help you get the right coverage and give you insights on what to expect when applying for life insurance. After applying for a life insurance policy, the insurance company looks into several factors to determine risks and allocates policy premiums properly. This write-up illustrates everything involved in purchasing life insurance, its underwriting process, and the final decision.
Evaluating Your Coverage Needs
There are two main types of life insurance: term life and whole life insurance. Term life insurance only offers coverage for a limited period, usually 20 to 30 years, while whole life insurance lasts for the entire life of the person. After applying for a life insurance policy, you will be required to determine your coverage needs and select the right one.
Consider how much your beneficiaries will need after you pass away. Also, determine how much you have current in your assets or group insurance as well as how much premium you can afford. However, the amount of life insurance coverage you need depends on several factors, like the age of your beneficiaries, outstanding debts, the earning ability of your spouse, and your family’s financial resources.
Life Insurance Medical Questions
Another thing to expect when applying for life insurance is the medical exam you are required to take. During your application, you will be asked for your name, job type, address, and employer. Aside from these, you will be asked other questions, including your:
- Weight.
- Lifestyle.
- Hight.
- Date of birth.
- Health record.
- Financial information.
- Recent medications.
- Criminal record.
- Risky hobbies.
While it can be tempting to hide your health-related issues, it is very important to be open to your insurer. Failure to do these can lead to several consequences, such as denied applications and even denied claims in the future, as well as increased premiums.
Life Insurance Medical Exam
Medical exams may seem like a general practice, but some life insurance companies do not take medical exams for approval. Also, companies often do not require an in-person exam; instead, the insurance provider will set up a paramedical to meet with you in your home, at a clinic, or in your office. During a medical exam, you will be asked to provide or do the following:
- Your immediate family’s medical history.
- Heartbeat check.
- Check your blood pressure.
- Check your weight and height.
- Your medical record.
- Take a blood sample.
- Take a urine sample.
- Ask questions about your lifestyle habits that may affect your health.
You will also be required to take additional tests based on your age; you will be asked about your preferred policy type and coverage amount. These additional tests may include an X-ray, EKG, and treadmill test.
After the Life Insurance Application
After applying for a policy, how long it will take to be issued depends on how fast the insurer reviews your medical record and verifies your application information. If there are any more unanswered questions, your insurer will extend the approval process. Generally, it takes between four and eight weeks for an underwritten policy to be approved and issued. Life insurance policies that use accelerated underwriting often get approved for coverage on the same day.
Denied Coverage
If, for instance, you are denied coverage due to a failed medical exam, there are other options you can consider. First, seek reasons why you are denied coverage and the best coverage option available. Check with other insurance companies or agents for companies that can work with your medical history or companies that require no medical exams.
Also, in cases where you are approved for a policy you do not like, you can purchase it and use it for the time being, then ask to be re-elevated later in the future. During this time, ensure you improve your health and other factors that disqualified you the last time. If you do not want to wait, you can shop for quotes with other insurance companies for the best policies for you.