What to Expect When Applying for Life Insurance

Applying for life insurance is really important, but as a busy parent it can be easy to let it fall to the bottom of an endless to-do list. If something were to happen to you without the right protection in place, would your family be able to manage financially? Taking out a life insurance policy can offer a financial safety net for your family, even when you’re no longer around.

If you’ve never applied for life insurance before, you might be apprehensive about how much information you need to give and how that information will be used. Understanding the process of applying beforehand can give you some peace of mind and can make the application a little bit easier.

Choosing the right type of life insurance policy

There are different types of life insurance, which can help protect a variety of things. It’s important that you find the right type of life insurance policy that benefits you and your family.

Your choice of life insurance can depend on your financial circumstances. A Life insurance policy can help to cover things like your mortgage, household bills, everyday living costs or contribute towards funeral costs should you pass away or become terminally ill within your policy term. A policy could even be used to contribute towards future costs, like your children’s education or childcare.

If you want to financially protect your mortgage and make sure it’s paid off if something should happen to you, term life insurance is the most suitable choice. Level term life insurance can help to pay off an interest-only mortgage, while decreasing term life insurance is more suited to a repayment mortgage.

You may also wish to take out additional policies to your life insurance that can protect against critical illness or loss of income due to accidents or sickness. This could protect you against more than one eventuality.

It’s a lot to think about, but the team at Busy Bee Life Insurance can help to make sense of your options.

What affects your life insurance cover?

The application for life insurance includes a number of simple questions about your health and lifestyle, such as your age, physical and mental health and whether you smoke. It’s important to give honest answers as it may invalidate a claim if you don’t as well as helping the insurance provider to determine how much of a risk you are.

Your answers can help to provide a clear picture of your health and how likely you are to develop any future health problems.

How is the cost of insurance calculated?

The cost of life insurance is calculated partly based on your health and lifestyle factors. For instance, smokers usually see an increased cost for their policy as they are considered a higher risk.

Insurance providers use your health and lifestyle to help determine an accurate cost for your policy. If you take out any additional protection, such as critical illness cover, your premiums may increase in line with your level of cover.

Taking out an additional policy can help to protect you from different eventualities. You can take out a second policy by combining Critical Illness with life insurance. What this means is that you will be covered on a first event basis, whether that be on diagnosis of a listed condition or in the event that you pass away or become terminally ill within your policy term.

Do you need a medical exam for life insurance?

Life insurance without a physical medical is available, and means you’ll be able to take out a policy without needing to complete additional health checks. Whether or not you’re eligible will depend on circumstances, in part, relating to your health, lifestyle and your family’s medical history. If you have had previous health problems or you have a complicated medical background, you may be asked further questions or be asked to undertake a physical medical examination.

In some cases, insurance providers may only require a GP report, but if you’re asked to attend a physical medical examination, it usually includes measuring your BMI, blood pressure and taking a small sample of blood from your finger.

Needing a physical medical for life insurance is usually decided on a case-by-case basis, and only some people will be asked; usually if you’ve had health problems in the past or your family have had a complicated medical history. It is nothing to be nervous about, and if you are in full health it is very likely you will be offered cover straight away.

Can you be denied life insurance?

In some cases, you might not be accepted for a life insurance policy because of medical reasons. Some providers won’t cover certain conditions, like cancer or unmanaged diabetes.

If you have been declined for life insurance cover in the past, it doesn’t mean you’ll never be able to get cover moving forward. Keep your health in check and manage any medical conditions as best you can, and it may help you in the future.

The insurance market is a competitive one, and you might be able to get accepted with a different provider. At Busy Bee, we help you compare the leading providers to help you find the right cover. What’s more, there are other types of insurance options out there that can help to financially protect you and your family.

For any questions you might have about life insurance, or if you’d like some helpful advice on choosing the right policy, don’t hesitate to get in touch with us today.