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When an individual wants to get a life insurance plan, he/she first has to fill up a life insurance application form. This form will require personal information, financial status, lifestyle, and medical history. All these information are necessary to determine if an individual is qualified for the certain insurance coverage he/she wants to get. The people who will view this document with the utmost confidentiality are qualified staff composed of underwriters, medical directors, and only those employees related to the receiving and evaluation of the application.

FAMILY AND HEALTH HISTORY

When applying for life insurance, an individual’s health history and family’s health history are important. It could very well determine if the application would be accepted or denied. The family and personal health history of an individual are indicators of the possible health issues or risks in the future and even sudden death. Diseases that run in the family like diabetes, heart diseases and cancer are being asked if the parents of the applicant died due to the disease before turning 60 years old. The hereditary characteristics of this diseases are to be considered. An individuals past illness could reappear even when seemingly healthy. Diseases like cancer, epilepsy, heart problems, etc.

You might have heard of the term Return of premium (or ROP) life insurance. It’s an addition to a term life insurance policy that provides a return of premiums paid by the policy holder. At the end of the term, the owner of the life insurance policy receives the full amount of premiums paid during the term. Return of Premium Term is very appealing to some policy holders because of its guaranteed pay-out feature. If you die, your family receives a lump sum of money. But if you live through the term, the insurance company promises to return all of your premiums. Of course, the cost of Return of Premium Term policies is higher than for a regular term policy. Also, if you decide to cancel your policy before the end of the term, you won’t get the entire return of premium you’ve put in. Premiums are returned on a sliding scale that builds up to 100 percent at the end of the term. So, for example, if you cancel a 20-year policy, at year 15, you can expect to get back only about 50 percent of your money.

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Life insurance deals with an unavoidable part of life that most folks would rather avoid, due to the less than pleasant circumstances it brings to mind. Even though our tendency is to not want to contemplate death, it is a necessity to have something to leave behind should the unthinkable happen to you. This way your your loved ones grieve only your passing and not financial dire straights. Life insurance can have several elements to it, depending on your choice of plans. Based on the amount of coverage you need, your premiums can vary quite a bit.

Getting the Lowest Premium:

Greater coverage through your life insurance policy results in higher premiums. By reducing the amount you wish to be paid out upon your death, you’ll be able to lower your premiums. However, don’t risk it too soon; instead, as you age and have fewer bills, you can reduce the payout. When you no longer have a mortgage or a car payment, you can cut back because your spouse won’t need to cover these expenses. You can decrease the payout when your children grow up, and you no longer need to support them. Another reduction can occur when each of you and your spouse begin to collect Social Security and any retirement funding you have available.

A type of term insurance that is beneficial to active and retired state employees is the Optional Life Insurance. This type of insurance allows the insured to increase his coverage up to eight times the amount of his annual salary. The designated beneficiary will be paid in the case of your death or in other catastrophic events. Optional Life Insurance is not an investment policy because it has no cash value. Rather, it is an employee pay all benefit which allows the insured to opt for an advanced payment on his life insurance death benefits in events that he has been diagnosed with a terminal illness. This is termed Accelerated Life Benefit.

Every individual applying for a life insurance policy needs to provide the necessary personal information financial papers and medical records. The following documents will remain confidential and it will only be used to determine if you are qualified for the certain insurance coverage that you’ve been wanting to get.

So who are the people who will view these documents? Qualified staff composed of medical directors, underwriters, underwriting assistants and other employees related with the receipts, submissions and evaluation of your application.
The insurance company needs to know the present financial status so that the amount of insurance that will be given to you is proper for the potential financial loss your beneficiaries might sustain as a result of your death.

The process of applying for a life insurance is usually a very long process. Why is this so?

A lot of life insurance companies are taking their time in processing your application because they have to gather necessary information in order for them to determine the right insurance rate for you.

The applicants who have medical history and went through a number of physicians still have to present their medical reports. Usually, it will take a long period of time to recover just one doctor’s records, particularly if the doctor’s office is not computerized or if the doctor is part of an HMO.

Every individual applying for a life insurance policy needs to provide the necessary personal information financial papers and medical records. The following documents will remain confidential and it will only be used to determine if you are qualified for the certain insurance coverage that you’ve been wanting to get.

So who are the people who will view these documents? Qualified staff composed of medical directors, underwriters, underwriting assistants and other employees related with the receipts, submissions and evaluation of your application.

The insurance company needs to know the present financial status so that the amount of insurance that will be given to you is proper for the potential financial loss your beneficiaries might sustain as a result of your death.

Do you know that even if you are perfectly healthy today, your past medical records are still important in applying for a Life Insurance?

The family and personal health history are two of the indicators of the possible health issues in the future and even sudden death. One example of which are cancer patients. There is a big possibility that the sickness will be back again in the coming years even if you can say that you are healthy today. Diseases that run in the family like diabetes, heart diseases and cancer are also being asked if the parents of the applicant died due to the disease before turning 60 years old.

I had a conversation with a certain John Smith who asked me about his application for Life Insurance. He wants to sign up for the amount that is higher than what was given to him. He is asking me why such thing happens even if he already informed them that he can afford such amount.

You have to remember that the main reason why you purchased life insurance is to protect you against loss. The total amount of the coverage that you have is also the total amount of the possible loss your primary beneficiary will experience. Debt Payment, Estate Analysis and Income Replacements are the usual determinants of coverage amount.

A lot of people are asking us why they are not allowed to just list down the people they want as beneficiary. Here’s the answer:

One can only qualify as your beneficiary when you fill out your application form if they are suffering financially when you die. In short, it is expected that these individuals will undergo financial loss because of your death. The usual beneficiaries include your husband/wife, children, extended family and business partners.

What are contingents or secondary beneficiaries? They are the ones will receive a benefit coming from your life insurance. They can only claim the benefits if the primary benefit dies at the same time. For example, if the insured individual and the primary beneficiary dies in a same time.