Can Life Insurance Application Questions Go Wrong?
Life insurance application questions are designed to assess your insurability. Because the company will want to collect enough premiums from you during your lifetime to make a profit, insurers screen applicants against various preexisting conditions. If you’re applying for life insurance, you may have difficulty understanding what the company is asking for or how your answers will be interpreted.
Common life insurance application questions are designed to gauge how healthy your lifestyle is. Unlike other types of insurance, which can profit through the insured never needing to collect on their policy, life insurance is always paid out upon your death in order to provide support to your family.
Therefore, the insurance will want to insure someone who is likely to live for a long time after purchasing the policy, in order to collect more premiums. Insurance application questions about your health include height and weight, pre-existing conditions, and family health history.
In addition to your medical history, insurance application questions are aimed at determining your lifestyles and habits: nicotine use, alcohol consumption, medication use, and even driving habits. If you partake in dangerous activities like sky-diving or car racing, you may not qualify for life insurance as you are at a higher than normal risk of premature death. Individuals with high-risk careers may also be excluded from policies.
When filling out your life insurance application, you may be tempted to lie so that you can get a better rate on your insurance. Don’t give in to the urge: Your insurance will require a physical exam in most cases, and will also research your medical, legal, and other personal history. Any lies uncovered may cause you to lose your insurance benefits. Answer honestly; you may be surprised that you can still get affordable life insurance even if you are not perfectly healthy.