Applying for life insurance: getting started
You know that life insurance may help protect your family when you are no longer able to. You know that the benefits from a life insurance policy may be used by beneficiaries to cover final expenses, to pay for housing or education, or to pay off debts. But is life insurance really an option for you?
If you are unsure about the life insurance application process or worried that you would not qualify for life insurance because of your health, it may help to better understand the life insurance application process. In general, the application process is simple, most of the time consisting of basic information. There are also life insurance options available for people with pre-existing health issues.
Life insurance application details
Here is a list of the types of information typically included in life insurance applications.
Basic Information
Every life insurance application will ask for basic identifying information including your name, age and social security number.
Medical History
Life insurance applications may ask basic medical questions to determine your overall health. For instance, they may want to know your height and weight, whether or not you use tobacco products, and the prescription medications you take.
Life insurance companies need to know about your medical history to assess the amount of risk you pose. Learning about your health and lifestyle helps the company provide you with the best policy for you and your family. If you do not have pre-existing medical issues, you may be eligible for a lower premium on your policy. However, it is important to note that individuals with health concerns or chronic conditions could still get life insurance coverage.
Family history
Life insurance companies may also ask questions about your family medical history. They may want to know if your family has a history of cancer, diabetes, high blood pressure, high cholesterol, or heart disease. This information is important because many chronic medical conditions are hereditary. Again, the company needs to accurately assess the risk you pose, so they can help you get the best possible rates and ensure your family remains protected.
Lifestyle questions
Finally, life insurance companies will want to know a little about your lifestyle. This information is also about assessing risk and determining the right policy to meet your needs. The company will likely ask about your job and your hobbies to determine if there are risks involved.
These questions will also generally include information about your driving record. Multiple reckless driving tickets or a Driving Under the Influence (DUI) ticket may be cause for concern from the life insurance company.
Even if you have risky hobbies or a job with a lot of risk, it is important to be completely honest. If you lie or mislead a company on your application, your policy could be found invalid later. For instance, if a company finds out you lied on your application, your beneficiaries could be denied benefits after you pass away.
Insurance for individuals with health issues
If you have a pre-existing health issue or are considered high risk for insurance because of your job, family history, or lifestyle, you can still find coverage to help protect your family.
Guaranteed acceptance whole life (GAWL) insurance is coverage that you cannot be turned down due to health reasons, enabling you to get a policy to help protect your family’s future. This type of insurance requires no medical exams, no intrusive tests, and no health questions. Applicants simply complete an online application. Once the application is approved, coverage begins when your first payment is received. Payments will remain the same throughout your lifetime, and coverage cannot be cancelled as long as payments are received on time.
