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.

Will the company refuse to pay if you die?

A lot of people still have doubts on signing up for a life insurance policy because they don’t trust such programs. You have to keep in mind that an insurance policy is a legal contract between the insurer and the company. The law requires every insurance company to pay what is stated in the policy in harmony with the policy provisions. Majority of the policies have a two years giving period that determines if they can refuse payment for material misinterpretation of facts or fraud. A lot of policies exclude those who committed suicide in the first two years of policy.

So you’ve stopped smoking three months ago. How come you are still considered by insurance companies as a smoker?

Usually, life insurance companies have various categories in classifying if you are considered as a smoker or not. Most of them require an insurer to be smoke-free for at least one year. Some even consider three to five years before one qualifies for non smoker rates.
Why in such long period of time? We all know that smokers usually stop their habit for awhile then return to smoking again in a month or two. If you are one of those individuals, better consult your agent about your case.

You decided to sign up for a life insurance policy today. What if you decided to have more or less coverage in two years?
To be honest, there’s no big problem in this issue. All you have to do is contact your insurance company so they can fully assist you in the processing of policy change form and in submitting it to the right department. If you are planning to increase your plan coverage, just call them up so they can provide you with the best and most competitive rates available in the company. The people who are planning to have increase in death insurance needs to go through the same process.

A life insurance policy involves lot of investment in terms of time and money. Like any other financial decision life insurance is not free from traps even though the fact remains that life insurance benefits are innumerable. You need to be very careful in avoiding them as insurance involves great deal of money. To ensure that you don’t commit any blunders it is advisable to double check the terms and conditions of the policy which is a legal agreement. Some of them are: Heavy Taxes on Surplus Amounts, Internet Information and lastly Improper Need Analysis.

(Source:lifecoverpro)