8 Questions You’ll Have to Answer When Signing Up for Life Insurance

A person talking to a life insurance agent

The questions you’ll be asked on your life insurance application will start from general questions to more introspective inquiries about your life. This is a standard element of the underwriting process. Your responses will determine your premium rates and the type of life insurance you qualify for.

Be prepared for the following questions the next time you sit down with a life insurance company:

Premium-Related Questions

General Information

The insurance company will start off by asking you for some basic information. This information includes your name, age, place of residence, and Social Security number. Additionally, life insurance providers will inquire about your marital status and how many children you have, giving them a better idea of who you want to insure.

Medical Record

Applications for life insurance typically involve a series of health-related questions and a request for your medical history. These questions give the insurer a better idea of the risks of your premature death and the length of time they have to pay out the policy. Apart from your height and weight, you will be asked if you smoke, take any medication, and have other questions about your medical history.

Insurance firms use MIB Group to confirm this data. This way, the insurance company can double-check all of your medical documents. This service can compile your medical records from your past clinics into one convenient location.

Occupation and Interests

Certain activities can increase or decrease your chances of becoming injured or dying. Your insurance company may refuse to cover you for your dangerous pastime, charge you more for your premiums, or exclude you entirely.

This is why it’s important to disclose your occupation when requesting quotes. For instance, a person who works in an office is not exposed to the same dangers as someone who works in construction. Your life insurance premiums depend on the occupational risk rating the insurance company assigns you.

A person talking to a life insurance agent

Possible Premium-Related Questions

These questions are standard on any life insurance application or quote, but they do not immediately affect your premiums since they don’t increase your risk level. Your monthly payments will increase if you purchase a more expensive policy or add other protections.

What You’re Looking for In Terms of Coverage

Most life insurance products have the same application forms across carriers. They’ll require details on the type of policy you want and the amount of money you’re looking to spend on protection.

Reason for Purchase

The insurance provider might suspect you of trying to commit insurance fraud if you’re in a rush to buy without a good explanation. The beginning of a new relationship, marriage, or the arrival of a child is all common occasions when people decide to invest in life insurance. Simply organizing your life is a valid reason, too.

A person talking to a life insurance agent.

Your Financial Situation

If you’re shopping for life insurance, the business may also inquire about your assets and debts to see if the coverage level you’re requesting is realistic.

For the record, having few assets and a large amount of debt is not a problem. If you have a steady income, you can buy life insurance and use the premiums to invest in your financial future.

Non-Premium-Related Questions

All said and done; there is some information you need to provide that isn’t part of the underwriting process but is still required for the sake of accuracy.

Beneficiaries

You can name multiple beneficiaries and decide how much each one will receive. If you think you might have a change of heart about who should receive the funds, you can make the beneficiary designation revocable. You’ll need the beneficiary’s approval to make it irrevocable. You can also name a contingent beneficiary in case the primary one dies before you do.

Short-Term Coverage Options

Your life insurance policy won’t cover you until the underwriting process is complete, which can take several days following your application. Before qualifying you for permanent life insurance, which kicks in right away, your insurance company or agent might provide you interim coverage. A temporary policy is a great option to receive coverage quickly, but it is usually more expensive than your complete policy.

A person talking to a life insurance agent.

Looking for Reliable Life Insurance in Houston, TX?

Our team at Franklin Life and Annuity has worked hard to earn a reputation as Houston’s most trusted life insurance provider. Our company has been providing life insurance for clients for over twenty years. Besides life insurance, we also offer final expense life insurance in Houston, Texas.

Get in touch with us, and we’ll help you find the perfect life insurance policy for you and your loved ones.