Term Life Insurance Articles
Vital Information For Completing A Term Life Insurance Application
2010-07-22
There are two basic types of life insurance: whole life or permanent life insurance and term life insurance. While both types have their benefits, many people like term life insurance because they have accessibility to several affordable term life insurance quotes. The term life option is also beneficial because it provides the individual with a choice regarding policy length and the amount of the coverage. In addition, completing the term life application is usually a relatively straightforward process. The following is some important information to keep in mind about the term life application process.
To initiate the process, an applicant must provide some basic information about himself to an insurance agent during an interview. It is important that an applicant be accurate about their medical history. Insurance companies will fact check an applicant's medical history. They will also compare past tests with the results of a current medical examination and information acquired from the Medical Bureau (MIB), a widely-accessed repository of medical information.
After the process is initiated, the applicant will be required to take a medical exam, usually performed by a company that is contracted through the insurance company. The standard medical examination can include a physical exam and blood and urine tests, among other basic medical evaluations. An examination for a high amount of life insurance may require more invasive evaluations. The applicant should ask the medical facility what foods, drinks and activities to avoid before the exam. The applicant should also get ample rest the night prior to any test or examination.
After the medical examination is complete, the candidate's application for insurance is reviewed to determine if it meets the insurer's underwriting standards. An underwriter will review the applicant's term life application and medical examination results and determine his risk of death. Life insurance applicants are categorized into risk classes and charged premiums on term life insurance quotes that correspond to their risk classification. Applicants in higher risk classifications are charged higher premiums, whereas applicants with a strong record of health are considered to have better-than-average risk and are assigned a much lower premium. If a medical problem is discovered, the applicant may be offered a substandard premium. He will not be denied coverage, but will have to pay a high premium. It is also possible for an applicant to be rated as "uninsurable" and denied coverage completely.
For those applicants who have at least a moderate level of health, term life insurance can be a successful option for those who want to have some amount of control over the type of coverage they receive.
