Buy Whole Life Insurance
Before beginning the application process to buy whole life insurance, it is necessary to have some important documentation on-hand and to have completed adequate research for whole life insurance quotes. Most insurance applications ask detailed questions about your medical history, and it is essential that these questions be answered completely and honestly before a life insurance company will underwrite and issue a purchased whole life insurance policy.
When these questions are not answered to the insurance company’s satisfaction, it is considered a material misrepresentation, and the policy may be voided or coverage may be denied when your survivors present a claim. Buying whole life insurance is more than just picking a random whole life policy and paying for life insurance rates.
What Is A Material Misrepresentation?
A material misrepresentation is a lie or an omission on an insurance application that would affect the carrier’s evaluation of your risk profile. The information must be of such a nature that if the company had been aware of the correct information, it might have refused to accept or underwrite the policy. If a person has had cancer in the last five years and fails to include that on his application, it would be a material misrepresentation. If they have not disclosed relevant information about their lifestyle (smoking, dangerous hobbies or occupation), this is also a material misrepresentation. If an insurance company finds a material misrepresentation, they will refuse to issue a policy or later deny a claim and avoid paying out your death benefit, making the whole life insurance policy and protection you bought useless.
What Documents Are Necessary When Applying For Life Insurance?
Most life insurance companies will request copies of medical records for the last five to ten years, a copy of your driving record and a list of previous addresses when you apply for a whole life insurance policy. One way to determine the exact documentation you will need is to review an application before actually completing one to buy whole life insurance. It is a good idea to have all the information on hand before trying to complete the application so your application process is not delayed. Also, you should photocopy important pieces, such as identification documents, ahead of time.
One way to experience buying whole life insurance and the application at your convenience is to get an instant, free whole life insurance quote online and figure out the types of questions they ask. Policyholders will also have the ability to compare whole life insurance rates, coverage, and policy options to learn what the top insurance companies are offering.
Family Medical History
Completing information about family medical history is part of the whole life insurance application, since certain diseases and medical conditions may be inherited. Include any family history of heart disease, cancer and diabetes. If your parents or siblings are no longer living, the company may request a copy of their death certificates in order to confirm their cause of death. If you do not know your biological family’s history in case you were adopted, include that information on your application when you buy whole life insurance.
Medical Examination
Most life insurance companies will request a medical examination before they will underwrite or issue a whole life policy. Even if you have recently had a complete physical, the company may require you be examined by a doctor of their choice. The exam costs the applicant nothing since the insurance company covers all the costs, and the company will not issue a policy until they receive the report from their doctor. If your life insurance company requests a medical exam, make the appointment for the earliest date possible to avoid further delays in coverage.
History of Mental Illness
There will be questions about any history of mental illness, and the questions will include family history, as certain mental illnesses may be inherited, such as depression or anorexia, and these increase the risk of death by suicide. Most life insurance policies only exclude coverage of death by suicide for the first two years the policy is in force. It is important to answer any questions regarding mental illness honestly and completely, to avoid having your application declined, your policy voided, or your claim denied.
Sample Questions From A Life Insurance Application
When you buy whole life insurance, the questions on the life insurance application are designed to present the company with a complete picture of your lifestyle, habits and medical history.
- Have you used cigarettes, cigars, nicotine patches or any other products containing nicotine in the past ten years?
- What prescription and non-prescription drugs, legal or illicit, have you taken in the past six months?
- What kind of exercise or regular activity do you partake in to keep fit and healthy?
The application will ask for details of your tobacco and drug use during the time periods specified. Also, it will ask about hospitalizations, chronic medical conditions, accidents and injuries requiring medical care.
The Whole Life Insurance Policy
Whole life insurance is a financial instrument because it has a cash value that accrues and grows, making whole life insurance an investment. Once you buy whole life insurance and the carrier issues you a policy, it is permanent unless the insured fails to make payments during the term of the policy, redeems the policy for its cash value or the insured dies. The terms cannot be altered as your insurance needs or financial circumstances change. As with any contract, it should not be finalized until you are familiar with all the terms and conditions of the policy.
Whole Life Insurance Quotes
Before you buy whole life insurance, it is possible to obtain free, affordable whole life insurance quotes by answering some pertinent questions without completing the entire application process. These online quotes are estimates based on the answers you provide, so it is imperative to be as truthful and complete as possible in your answers.
Documentation is not usually required for a free life insurance quote online, but it is important to remember that these quotes are only estimates, and monthly premiums may be more or less when the full application is reviewed. Simply enter your 5-digit zip code above to compare whole life insurance quotes now.
