Monday, January 11, 2010

Applying for life insurance

Applying for life insurance can be a long, involved process. Filling out a life insurance application is certainly not easy, and can be frustrating, time-consuming, and difficult.
But this application does not need to be so difficult. If you understand what the insurance company is looking for, you can fill out your life insurance application in such a way that you have a good chance of getting the best premium possible.
Tell the Truth... But Not Too Much
The most important part about filling out a life insurance application is being completely honest in your answer to every question. It may be tempting to try to lie about or cover up a medical condition that you fear might make you ineligible for the insurance, but it is better to have your application denied than to have your policy revoked later (when it might be even more difficult to find another one) or have your heirs' claim rejected.
You do not, however, want to give the insurance company more information than they ask for. If there is a question about a specific health condition and you have a related condition but not the condition asked about, there is no need to explain your condition under that question. If you plan to travel to a place or for a length of time not mentioned on the application, there is no need to mention your trip.
Many times, life insurance companies will assess you at a higher risk level if you give any indication that you could possibly be at higher risk of death. Telling them more than they ask for on your life insurance application gives them even more reason to do this.
Fill in the Blanks
Make sure you complete the entire life insurance application and provide any other documentation the insurance company requests. Any lack in this area gives them grounds to reject your application or assess you at a higher risk level, which means you may not get the best premiums even if they do issue you a policy.
If you have any questions about what they want in a certain question, contact the company or ask someone else what they think. If a question does not apply to you, write "N/A" in the blank so the company knows you read and considered the question and did not just skip over it.
Provide Documentation
Many life insurance applications require other documentation, like a statement or a form filled out by your doctor certifying your health or documentation of your driving record. If at all possible, include these items with your application when you send it in to the company.
If you cannot include them or the company requests them separately, keep track of everything you send in case of a dispute or some confusion later. Once you send everything in, you should hear back from the insurance company about your captive insurance application in a matter of a few weeks. Feel free to follow up with them if you do not hear anything in that span of time.

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