You have discussed your life insurance needs with your agent and you’re ready to complete an application. What’s next? That depends.
Your age, health, face amount of the policy and the type of policy you choose can all make a difference on the information needed on the application or that might be needed after applying.
You may be finished after just completing the application as it covers a broad range of basic information:
- driving history
- hospital stays
- recent diagnoses
- foreign travel
- physician information
Depending on your answers, you may also be asked for additional information or to complete a paramedical exam, phone interview or electrocardiogram. Records from your physician may also be requested.
It’s important to be honest on your insurance application. If you try to conceal information, the result may be a higher premium or worse: Your application could be declined or loved ones denied the valuable death benefit at claim time.
While a paramedical exam may make you nervous, it is a great way to get a better idea of your overall health. The examiner will schedule a convenient time and place to complete the exam and will capture a lot of data for the underwriting process – height, weight, blood pressure, tobacco use and answers to medical questions. The examiner may collect blood and urine samples. The process takes about 30 minutes and is usually free to the applicant. You’ll receive a copy of the report that you may review with your physician if you wish.
Some companies offer life insurance with no medical exams, and some people think this means no medical information needs to be disclosed. This is not usually the case. Applicants may have the chance to be approved without a medical exam; but receive no guarantee a policy will be issued.
These life insurance companies may achieve their “no medical exam” practice by charging higher premiums, relying on credit reports, using information accumulated from prescription databases, reviewing medical information disclosed on the application and establishing guidelines around who qualifies for the program. If the applicant does not fit the mold of these companies’ target client, the applicant is directed to complete a medical exam to continue the application.
Applying for life insurance through your workplace usually requires very little underwriting information. The life insurance company is relying on a fair distribution of risk and generally healthy employees. However, group life insurance coverage is not always the best solution for an individual’s needs. It often is tied to your employment, and it may not be possible to continue it after you leave that employer.
KNOW YOUR OPTIONS
Like many things, life insurance is not “one size fits all.” Insurance needs differ from person to person and from one stage of life to another. Your life insurance program can be designed to fit those needs and grow as your needs do. Contact your independent insurance agent to discuss which life insurance program best fits your needs.
For policy service and additional information, speak to Landmark Risk Management & Insurance. For a complete statement of the coverages and exclusions, please see the policy contract. All applicants are subject to underwriting approval. Products and riders available in most states.