Whether you’re thinking about applying for life insurance or just curious, we will cover exactly what’s on the life insurance application. Life insurance companies use a lot of information to safeguard themselves from bad risk in order to maintain their financial strength. That is why a lot of information is asked up front for the application and additional information gathered on the back end. Most life insurance companies have similar sections for different information they require.
First part of the life insurance application you will be asked for your personal information such as your full name, address, DOB, driver license, social security, and employment information. Next, the application will usually ask you for both primary and backup beneficiaries. This is where you will decide how the pie will be distributed between your family in the event of sudden death. Keep in mind that you will need to have your beneficiary’s name, DOB, relation to you, social security number and percentage to be paid out.
Here is where it gets interesting because you will be asked a series of questions about your medical history and non-medical hazards. There are too many questions to list, but let’s look at some sample overview of what to expect.
Sample Life Insurance Health Questions
What is your height and current weight?
- Your build will strongly affect your rates and some companies will give you a better rate so it’s important to shop around.
Have you ever used tobacco?
- If you haven’t used tobacco in the last 24 months most companies will give you a non-smoker rate however to get the best rating you need to be tobacco free for more than 5 years. For anyone who uses electronic cigarettes, tobacco chewing or occasional cigar you may qualify for non-smoker rates as well.
Has anyone in your immediate family passed away from stroke, cancer or heart attack prior to age 60?
- If the answer is yes, you can expect to get a higher rate since this statistically means you have higher odds of getting those illnesses.
Are you diagnosed with any illness/diseases? (Blood pressure, diabetes, stroke, heart attack, asthma, cancer, hepatitis, depression and many others)
- This is where most clients get substandard rates or simply get declined. For each condition you have the company will deduct points so they kind of stack up to determine your final rate or eligibility.
Are you on any prescription medications?
- This is a good time to let the carrier know since they will be running a prescription database check. So it’s best to be straightforward and let them know what the meds are for.
Have you been hospitalized within the last few years?
- If you have a medical condition and have been hospitalized for it within the last 24 months typically that looks bad and some carriers will want you to wait before reapplying.
Do you have AIDS, HIV or ARC?
- If you answer YES, then you should only be looking at a guaranteed issue life insurance plan.
Are you on disability now?
- This is usually asked to see if your medical condition is disabling you from working and if it is then you have a moderate to severe condition.
Name, phone, address of your primary care physician?
- Carriers ask these details since they will pull medical records if they need additional details. Sometimes this will be skipped if everything else is totally normal.
Sample Life Insurance Hazard Questions
Are you a pilot?
- For commercial pilots, there is no surcharge. If you’re a private pilot you will need to have certain certifications and total hours. For student pilots, there is a flat extra for the time they are students which get very costly.
Do you participate in any dangerous activities?(skydiving, scuba diving, racing, mountain climbing, etc.)
- If you answer yes, it is going to be wise to use a high-risk agency since most companies will rate you highly or decline the application.
Are you planning to reside outside the U.S. within the next two years?
- If you are the carrier want to know which country since certain countries are extremely risky. For example, if you’re going to a country where there is mishap or war you’ll most likely be declined.
Have you been convicted of a felony or DUI?
- Someone with a felony should only apply for life insurance after 12 months once probation or parole has been completed and only with certain companies. (click here for more info) DUI’s are a little easier to insure but prepare for higher rates especially if it occurred recently.
Any history of substance abuse?
- This can get tricky especially if it is recent. From our experience, the companies want to see some time pass.
Active Military?
- If you’re active military almost all life insurance carriers will turn you down for obvios reasons.
There is also a section on the application that asks about the coverage specifics. This is where all the information about your plan type, coverage amount, and any additional riders will go. Next, you will need to provide information about an existing life insurance coverage and answer questions pertaining to replacement of the policy.
Once the application is complete, the company will schedule an exam unless you opt for no exam life insurance. It’s crucial not to hide any information since the life insurance companies are incredibly good at finding most minor details about you. They will check the MIB (Medical Information Bureau), Rx databases, doctor records, DMV and might even request a file from a consumer reporting agency.
If you’re wondering what the application entails because you’re unsure about your eligibility. There are thousands of life insurance companies and each company has conditions which they will insure that others won’t. The key is to work with an agency that is independent and represents many different companies. As mentioned before, be upfront with your agent so they can recommend the right company for you.
Hope we were able to give you an idea of what to expect, but if we missed anything drop us a comment or simply reach out. Now that you know, we welcome you to check out some term life quotes here.
