Applying
for life insurance is straightforward, but there are certain steps you
must follow. Here, we tell you how to get life insurance.Most
people qualify for life insurance. In general, it is easier for a
young person in good health to get life insurance at an affordable
rate. But since there are so many different types of life insurance
policies, you can probably qualify for life insurance no matter what
stage of life you are in.
To get
the life insurance that you can afford, you should understand how life
insurance companies process your application. Life insurance companies
use a process called underwriting to determine your risk for dying.
Each company has different ways of assessing your risk; some are more
involved than others. Most companies ask you to complete certain steps
to determine if you qualify for their life insurance policies.
To get
the life insurance that you can afford, you should understand how life
insurance companies process your application. Life insurance companies
use a process called underwriting to determine your risk for dying.
Each company has different ways of assessing your risk; some are more
involved than others. Most companies ask you to complete certain steps
to determine if you qualify for their life insurance policies.Step 1: Fill out an application
What life insurance companies ask on the application:
- Name
- Height
- Weight
- Health history
- Family health history
- Lifestyle habits
- Annual income
It
is very important to answers these questions honestly because the
company can cancel your policy and keep any premiums you have paid if
they find out you lied on your life insurance application.
Step 2: Undergo a physical exam (for some policies)
Some
life insurance companies just ask health-related questions on their
application. But others may require you to undergo a medical exam to
evaluate your overall health. What might be included in the medical
exam:
- Review your medical history and family’s medical history.
- Review your habits (such as smoking, drinking, exercise, diet).
- Check your height, weight, and blood pressure.
- Take a blood sample.
- Take a urine sample.
- Perform additional tests (such as EKG, treadmill test, chest X-ray).
Step 3: Pay the premium for your desired policy
To
get life insurance, you have to select a death benefit that is equal
to your potential lost income. You also have to select a life insurance
policy that you can afford, meaning the premium is something you can
pay on time for the duration of the policy. You will probably not
qualify for a life insurance policy if you try to get a death benefit
that is too large in comparison with your risk level. If you select a
premium you can’t afford and then stop making premium payments for the
policy, then your policy will be canceled.
What if you don’t qualify?
Things that might make it more difficult for you to get a life insurance would include:
- Pre-existing conditions (such as cancer or heart disease)
- Major heart attack
- High-risk occupation (such as military service)
- Dangerous habits (like frequent sky diving or bungee jumping)
- Lying on your life insurance application
If you fall into one of the above categories, you may still be able to get life insurance, but you will pay a higher premium. And there may be a limit on how much coverage you can get. If you are a cancer survivor
or have experienced other health issues in the past, you may qualify
for life insurance, as long as a certain amount of time has passed and
you are currently in good health.
And
remember, being denied life insurance from one company does not
automatically mean you won’t qualify for life insurance from another
company. It’s important to shop around.