All About Life Insurance Applications
We all know that life insurance is an important purchase, but many of us end up putting off this important purchase until it is too late. The decision to delay buying life insurance can have serious financial repercussions for the loved ones who are left behind, and many families have been financially as well as emotionally devastated by the untimely death of their beloved husband, wife, father or mother. In the absence of the family breadwinner families are left to suffer financially, falling behind on the mortgage and undergoing severe financial strain.
Fortunately it is easy to protect your family and their financial future with just a few clicks of a mouse. Applying for life insurance is easier than ever before, and it takes less time than you may think. While lie insurance can be a complicated subject, applying for life insurance is relatively straightforward. All it takes is some basic information. Much of the information needed to complete the typical life insurance form is easy to gather, but it is important to gather all the needed information before getting started.
In order to complete an application for life insurance you will need:
Basic name and address information – the application for life insurance will ask for basic information such as your name, your address, your contact information and perhaps your email address. This basic information will make it easy for the life insurance companies to contact you should further information be needed. In most cases you will be able to designate how you prefer to be contacted (email, telephone, traditional mail, etc.) Be sure to verify that all information has been entered correctly before moving on to the next step. You may also be required to submit your social security number on the actual application for insurance.
Your state of residence – life insurance companies are governed by strict rules put in place by various states, and the companies will need to know which state you live in order to provide you with an accurate quote. Not all life insurance companies operate in every state, so your state of residence will affect the number of life insurance companies to which you will have access.
Your date of birth – age obviously has a role to play when it comes to life insurance premiums, and in general younger applicants can enjoy lower premiums than their older peers. Life insurance companies will use your date of birth, gender and other demographic information, along with their actuarial tables and other proprietary information – to determine your monthly premium.
Your gender – gender also plays a role in determining risk, so you can expect to provide this information whenever you apply for life insurance. During the underwriting process life insurance professionals will use actuarial tables and other information to come up with a realistic quote.
Health classification – insurers also use various health classifications to determine the applicant’s level of risk, and it is important for applicants to provide accurate information in this regard. One of the biggest risk factors insurers use is past and present tobacco use, and the life insurance application will include questions about smoking and other risky behaviors. Providing accurate information here is vital.
Level of death benefit – when it comes to life insurance the death benefit is a critical consideration, and the life insurance application will allow applicants to choose their desired level of coverage. It is important for life insurance shoppers to determine how much they will need to protect themselves and their family before contacting insurers. Often times a Life Insurance Company will have a specific product or product name for each level of death benefit.
Term – for most people term life insurance will be the most affordable option, and it is important to think carefully about the desired length of coverage. Term life insurance can run the gamut, from as little as five years to as long as thirty years. Again, most Life Insurance Companies will have a product name describing the death benefit and term you have selected. It is important for shoppers to think carefully about the length of coverage they need when filling out the application.
Work History – Some applications require information regarding your work history. Some occupations are more hazardous than others and the Insurance Companies want to know this.
After you have provide all the relevant information on the life insurance application and submitted it to the Insurance Company you will be contacted to schedule a medical exam.