The only thing between you and your future life insurance policy is the application itself. The goal of the process is for the company to determine whether you’re a good fit for the policy. They want to make sure they’re insuring the right person – more specifically, someone who will be able to make payments over a long period of time.
How Do I Decide On What I Want From My Policy?
You have a choice between permanent life (lasts forever) and term life (lasts 10-30 years). Permanent life is more expensive because it lasts forever and gives you a savings account that builds tax-free with interest. Term is less expensive because it’s temporary and does not feature a savings account.
What Does Applying For Life Insurance Require?
Enrollment typically involves answering questions about your health and lifestyle and undergoing a medical exam. Collecting your medical information is known as “medical underwriting.”
Your results will determine whether you get the policy and how much your premiums will be if you get the policy.
What’s On The Medical Questionnaire?
The medical questions require you to disclose basic information about yourself. They’ll ask about your age, lifestyle habits (e.g., drinking and smoking), weight, and other relevant information that can help them determine the risk they will take on to insure you.
Some policies’ medical underwriting goes no further than this – hence why they’re known as “no-exam” policies, but they will have a lower death benefit.
What Does A Medical Exam Involve?
The medical exam is conducted by a paramedical (licensed healthcare professional contracted by the insurance company). The exam can take place in your home or at a clinic.
They’ll take your blood pressure, collect a blood and/or urine sample, check your heart rate, and assess your medical and prescription history. The purpose is to get a rough estimate of your life expectancy based on previous diagnoses and current vitals.
Some will go an extra step by administering treadmill tests and taking x-rays.
How Do Companies Assess Medical Exam Results?
This is where the underwriter comes in. The underwriter will look at the exam results and may request other records from your primary doctor. It can be days or weeks before you get the final word from the company.
If you’re accepted, they’ll set a premium rate for you, and you will begin making payments. If you’re denied, you may have to look into other options. If you had unfavorable results from the medical exam, you might want to consider enrolling in a no-exam policy.
Find A Life Insurance Policy Today!
Game Changing Benefits will help find you a life insurance policy that meets all of your needs. Call us today at 972-331-1060 to learn more about your policy options.