Do you want to ensure your loved ones aren’t left with more than they need to deal with after you die? If so, term life insurance might be something you want to consider. This type of life insurance will stay in effect for a specific time. If you die while your policy is active, the insurance company will pay out the benefits.
Have you been looking to get a term life insurance policy? You already know what policy benefit amount you want. You may also know what company you are using and have chosen the length of the policy. If so, it is time to start working on your application. It is important to know every life insurance company will need different things from you. There is some basic information that all life insurance companies will need.
Listing the Beneficiaries
If you are going to get a term life insurance policy, you will need to have at least one beneficiary on your policy. This is the person who will get the benefits after you have passed away. You can choose one or more people to list as your beneficiaries. You can decide the percentage of benefits that each of the beneficiaries will be getting. For instance, you might want your spouse to get 20% of the benefits. You might want each of your children to get an equal percentage, as well.
You may also need to list a beneficiary, besides the first, in case that person passes away before you do. If this is the case, someone else will need to receive your benefits after you die.
You will need the birth dates and Social Security numbers for each beneficiary you list. The insurance company may also need your beneficiary’s addresses and/or phone numbers.
Frequency of Payments
You will need to pay for the term life insurance policy. On the application, it might ask for your payment frequency. Some of the common options will include paying a lump sum or once a year. They might also allow payments twice a year, quarterly, or monthly. These options give everyone the best option to fit their budget and situation.
Do you have questions about the specifics of your payments? If so, you will need to contact the term life insurance.
Different Life Insurance Policies
Do you have any other life insurance policies? If so, the term life insurance company you are filling the application out for may want to know about these. Do you have pending life insurance policy applications? Make sure you tell the term life insurance company.
You should also let them know how much you are getting or applying for from other companies. Are you trying to get an excessive amount of life insurance benefits? In these cases, the term life insurance representative might need to know why.
Questions Unrelated to Health
There might be questions on the application that aren’t health-related. They might ask if you have had any suspensions on your driver’s license. You might have to state if you have any criminal convictions or moving violations. If you have ever gotten a DUI, this will need reported. There may be other similar questions, too. Have you answered yes to any of these questions? If so, you will need to write down the dates that these events occurred.
Life insurance companies usually want information that has occurred in the last 3 to 5 years. If you have convictions that are older than what they are asking for, you don’t have to include those.
Risky Activity Plans
The term life insurance company may ask you about plans you have for risky activity. Do you plan to go scuba diving, hang gliding, skydiving, rock climbing, pilot a plane, or ice climbing? They will want to know about it. They may even ask if you have already participated in any of these risky activities. The more risky activities that you plan to do, the higher your premiums are likely to be. In some instances, you might get a denial due to being high-risk.
You might also have to report whether you are planning to leave the United States. There are some areas of the world that are more high-risk than others. You can check with the United States Department to see which areas are the riskiest.
Family History
You may know the term life insurance company will want information about your health. They may want some information about the health of your immediate family members. too. There are some health conditions, such as cancer and diabetes, that often run in families. Your family history can give the term life insurance company an idea of your life expectancy, as well.
You should include whether your siblings, parents, or grandparents have any health diagnosis. You should state what age these conditions began for your family member. The company may want to know when your family member passed away and their age upon death.
Your Own Health History
The term life insurance company will need to know about your personal health history, as well. Depending on the company you work with, they might want you to get into depth about your health history.
You may have already put your health information in the quote that you requested. You will still need to enter it all into your term life insurance application, as well. The term life insurance company may want to get your medical records for reference. Be sure you are being truthful about your medical and health history on your application.
Many term life insurance companies use something called the MIB Group. This is a database that includes all the health conditions you put on life, health, or other insurance applications over a 7-year period. You may have put a previous personal health history of skin cancer on an application 3 years ago. If you don’t include it on this application, you are likely to get denied.
You can get your personal MIB file to see if it is accurate. All you will need is your name, your primary doctor’s phone number, and address, and when you saw them last.
You should be ready to list all your symptoms, diagnoses, treatments, and dates for all these. The things you need to list include:
- Diabetes
- Cancer
- Asthma
- Ulcers
- Brain disorders
- Mental health disorders
- Anorexia
- Bulimia
- Eye issues
- Throat issues
- Nose issues
- Ear issues
- Any other health issues you have had
Medication List and Substance Use
The term life insurance company is going to want to know the medications you are taking. You should include prescription medications and over-the-counter medications, as well. They will also want to know whether you currently or whether you have ever used drugs or alcohol. If you have ever been in treatment for a substance use disorder, they will want to know about it.
Signing the Application
Once you fill in all the information on the application, you are ready to sign your application. Without signing the application, the document is not valid. This is a legal document. If you have left anything out, you could get a fraud charge.
You can expect the term life insurance company to verify all the information that you have given to them. They could check your medical records, DMV report, and prescription medication records. You can expect them to check your credit history (checking for bankruptcy) and your MIB report. Before you sign the term life insurance application, be sure you haven’t left anything blank. Make sure you were honest through it all.
Completion of the Application
After submitting your application, an examiner from the company will contact you. They will schedule a medical exam with you (if the policy you signed up for requires this). They will allow you to pick a time and place that is most convenient for you. In some cases, you can even have it done at your own home.
When the exam is being done, they will check your weight and height. They will likely want a blood and urine sample. The examiner will likely go over all your health history questions again. You will become an expert in your own medical care by the time you finish this process.
You might be wondering when the policy will be in effect. This all depends on the insurer and when they can get everything they need. It might take them some time to get your medical records (especially if you have a lot of them). They will also need to verify everything that you put into your application.
There might be questions they still have for you. If this is the case, the examiner will reach out to you again. For most people, it can take between 2 weeks – 3 months to get a term life insurance policy in effect after applying. 1 month is the average time frame for this process.
Conclusion
Now you have more information on what you need when applying for term life insurance. You can get everything that you need to start filling out your application. From there, you can submit it and wait for the examiner to reach out to you.