Are you curious about how life insurance companies process an application?
Buying life insurance for yourself is always a sensible decision. It doesn’t matter whether you’re in your early thirties and completely fit and healthy or whether you’re a senior citizen who is getting weaker with each passing day. Life insurance companies offer many different plans at varying monthly premiums to cater to everyone.
The important thing to realize is life is unpredictable and nobody knows how long they’re going to stick around. This is why it’s wise to invest your hard-earned money to buy a life insurance plan that will help you secure the financial position of your family even after you’re gone. This way, you can sleep peacefully at night knowing you’ve done everything you could for your loved ones. Continue reading this article to get a simple overview of how insurance companies process a life insurance plan. Knowing these steps will help you be well-informed about the application process and criteria.
Ask You to Fill out a Detailed Application
The first step for applying for a life insurance plan is to fill out a detailed application for the company. Insurance companies will give you a detailed application form to fill out so that they can collect the necessary information they need. They will inquire about details like your full name, your height, your weight, your health history, your family’s health history, your annual income, and your lifestyle habits.
You must answer all questions honestly when filling out the application form for a life insurance plan. Any incomplete or untruthful answers can lead to the cancellation of your insurance policy at any time. Moreover, insurance companies also have the right to keep the premiums that you paid for this insurance plan so far if they find out you lied in your application.
Request You to Undergo a Physical Exam
Even though the application forms for life insurance plans include many health-related queries, most companies still ask applicants to undergo a physical exam. The main objective of this physical exam is to evaluate the overall health of an applicant.
The physical exam is a process that includes different things like checking your weight, height and blood pressure. You may also be asked to provide a blood sample for testing to ensure you don’t have any serious medical conditions. Moreover, you and your family’s medical history will be reviewed in detail at this stage. A doctor will also inquire about your habits like smoking, drinking, exercising and your diet to do a thorough medical assessment of your health.
Ask You to Select a Death Benefit
After the physical exam, the representative from a life insurance company will contact you for the selection of your death benefit. As a general rule of thumb, your death benefit should be close to the value of your potential lost income. Moreover, you have to choose a life insurance policy that you can easily afford to pay for. This means the monthly premium of the life insurance policy should be an amount you can easily pay on time for the duration of the policy. Failure to pay premiums on time results in the cancellation of a life insurance plan. This is why it’s better to select a life insurance policy that doesn’t have a very high death benefit.
We hope this article has cleared up any confusion you had about the life insurance application process.
