We aren’t hiding that fact that it does take some effort to get life insurance. It’s not like simply picking which movie to watch on Netflix next (though that can be time-consuming once in a while!) Buying life insurance is one of the most important purchases you can make for your family. It’s a very technical process (on our end) so we need many questions answered from you to ensure that A) you’re who you say you are and B) you can be approved.
The reasons behind why there are so many questions on a life insurance application:
Verifying Your Identity
When you’re applying for life insurance you will be asked certain questions that will be used to prove you are who you say you are. These questions include:
- Your full name
- Street address
- Social security number
- Driver’s license number
- Employer information
Verifying these facts allows us to ensure no identity theft or insurance fraud is going on. We can also use this information to access medical and driving records. Life insurance companies use your medical information and driving record information to help determine if you can be approved for life insurance, and what “risk class” you are in. In the life insurance industry, your risk class determines how much you will be paying for your policy. For example, if you have had multiple speeding tickets in the past year (as will be shown on your driving record) you’ll likely be paying more than the person who had one speeding ticket 10 years ago.
These facts are also used to make sure you are able to pay the premiums of a life insurance policy. Not only do you pay to keep a policy in force, but the insurer takes on costs as well such as administration costs, marketing costs, costs of death claims, and the costs of your medical exam and testing. A life insurance company will want to make sure that if they take the time to approve you for life insurance that you have the money to actually pay for it. Confirming your identity, employer, and income will do just that.
Getting You Approved
The next piece of the life insurance puzzle, after proving you are who you say you are, is figuring out how much coverage you can get and at what cost. Questions that help determine this include:
- Are you a pilot?
- Are you in the military?
- Do you participate in any hazardous activities?
- Have you ever been convicted of a felony?
- How often do you drink?
- Do you use tobacco products?
- Do you have plans to travel internationally?
- Do you have any medical conditions? What about immediate family members?
The pricing of life insurance policies is all based on how much risk the company is taking on to insure the applicant. As an example, if an applicant is a 30-year-old with no health issues, doesn’t participate in any risky hobbies, and has a steady job as a pre-school teacher, the life insurance company is going to assume that this person is far off from death. The chances of the life insurance company having to pay out a death benefit on this individual any time soon are statistically low. Whereas if an applicant is a 60-year-old skydiving instructor, then that applicant carries a much higher risk of dying and the life insurance company is going to require that they pay more in premiums than the 30-year-old pre-school teacher.
The pricing of life insurance policies is all based on how much risk the company is taking on to insure the applicant.
Questions like “Are you a pilot?” and “Do you use tobacco products?” help life insurance underwriters assess an applicant’s risk class. The travel question really is mainly inquiring on if an applicant has any plans to visit a war-torn or hostile country. As an example, if you want to apply for life insurance, but are planning to do missionary work in Sudan next month, your application may be postponed until you return.
Life insurance applications will not only ask you for details on your health condition, but they will want to know if any immediate family members (mom, dad, siblings) have ever been diagnosed with a serious condition such as heart disease, cancer, or diabetes. These inherited conditions may affect your life insurance premium. While you may never actually be diagnosed with any of these conditions, the life insurance underwriters have to consider that you might.
Applying for Life Insurance
When all is said and done, Quotacy makes the life application process easy. You can fill out an application right online from the comfort of your own home in less than 20 minutes. We review your application in detail to make sure that the life insurance company you chose to apply with is a good fit, and then we go to work to get you approved!
Start the process by getting a term life insurance quote. We don’t even need any personal information until you’re ready to apply. Using our quoting tool, you can change your coverage amount and term length to adjust the premium amount. Play around with it until you find a policy you’re confident in, and then you’re ready to apply. We made buying life insurance easy for the modern consumer, but, in reality, life insurance isn’t for you… it’s for the ones you love.
About the writer
Marketing Content and Social Media Manager
Natasha is a content manager and editor for Quotacy. She has worked in the life insurance industry since 2010, and making life insurance easier to understand with her writing since 2014. When not at work, you can find her throwing a tennis ball for her pit bull mix, Emmett, or curled up on her couch watching Netflix. If it’s football season, the Packers game will be on. Connect with her on LinkedIn.