As of 2020, about 54% of Americans are currently covered by life insurance. Life insurance is a contract between a policyholder and an insurer. The insurer agrees to pay a sum of money to a designated person upon the insured person’s death.
Life insurance provides financial protection for a loved one (often a spouse) after a sudden death.
But, settling life insurance can be confusing, and it’s critical that your information is correct. To help you navigate the process, here is everything you need to know about the life insurance application.
Information Required on the Life Insurance Application
Whether you’re filing for standard health insurance, pet insurance, car insurance, or life insurance, there’s an application process. The insurance company uses these applications to decipher your specific needs and risks.
The information included in your application needs to be accurate and up-to-date.
When applying for life insurance, you’ll need to provide your height, weight, date of birth, lifestyle habits, and financial information.
You’ll also have to complete an in-person medical exam in most situations. The medical exam will look at you and your family’s medical history, measure your blood pressure, heartbeat, and take a blood and urine sample.
Depending on the type of insurance, you may also need to undergo an EKG test, x-ray, and treadmill test.
Term and Permanent Life Insurance
When filling out a life insurance application, you’ll also have to select whether you want term or permanent life insurance. Term life insurance has no cash amount. Because of this, you don’t need to provide as much financial information during the process.
If you are filing for permanent life insurance, you’ll have to answer more in-depth questions about your finances. Permanent insurance changes as investments adjust over time, so you’ll have to provide your financial status in more detail.
Ways to Reduce Life Insurance Costs
If your life insurance premium is higher than you’d like, there are several ways that you can lower the costs. This includes quitting smoking, losing weight, reducing alcohol intake, and improving your driving. These are all risk factors that play significant roles in your premium cost.
Smoking puts you at increased risk for cancer, and obesity increases the risk for diabetes and heart disease. Like smoking, alcohol also puts you at risk for additional health complications.
If you have a history of reckless driving, you’re at a higher risk of a car accident.
By reducing these behaviors and habits, you can save hundreds every year in premium costs.
Now You Know All the Basics About Applying for Life Insurance
These are all the basic things you need to know before filling out a life insurance application. It’s important to fill out your life insurance application and any questions about your health accurately.
It’s also critical to understand how you can save on the cost of life insurance. Generally, the healthier your lifestyle, the more money you’ll be able to save.
So, don’t wait! Start exploring your options for coverage today. It’s always better to be safe than sorry!
And for more helpful tips related to insurance, be sure to check out the rest of our blog. We have a bunch of other articles full of awesome tips!