Many employer groups tell me that if their employees want permanent life insurance they can just go buy it on their own. The problem is that many employees can't qualify for life insurance because of their medical history or for other reasons (like being a pilot or a race car driver for example).
Your "Estimated" Premium
Eight Underwriting Requirements You Might Need To Do To Buy Life Insurance
- Complete an application The first step is to apply. You apply by filling out an application. One of the life insurance applications I saw recently had 42 pages in it's life insurance kit. Of those, 12 pages were considered part of the application. Most of the time, your agent will help you fill out the application. In this application, there are lots of questions. The basics like who you are, how old as well as where you work are in there but there also questions about your activities, your health and other financial questions. Sometimes an application is all you need to complete for the insurance company to let you know if they can give you a policy.
- Attending physician statements (APS) As part of the application, the insurance company may request information from your doctors to find out what medical conditions you've been treated for as well as what kind of medications you might be on.
- Motor vehicle report A motor vehicle report will let the insurance company know how risky a driver you are. Do you have a number of speeding tickets or DUI's? This is information the insurance company will want to know.
- Para-med exam A para-med exam is when someone comes out and sees you specifically to satisfy certain medical requirements. These will be the detailed questions about your health that you might have answered in the application. You can expect to be weighed, your blood pressure checked along with other medical requirements I've listed below.
- Blood and urine During your para-med exam, you may be asked to provide blood and urine samples. These samples will provide the insurance company with lab results that can reveal things like high cholesterol, whether you smoke or have drugs in your system.
- Electrocardiogram (EKG) Depending on your age, you might also have to get an EKG to find out if your heart is working properly.
- Inspection reports Insurance companies can also request inspection reports. These reports can detail more information about your lifestyle. If it's determined that you like to race cars or do other hazardous activities that you might not have revealed on the application, the insurance company can find out with reports like these. If you have ever seen the movie "Along Came Polly", you saw this process in action.
- Any thing else the insurance company might ask for An insurance company can ask for other things as well. The higher the amount of insurance or the older you are, the more requirements you can expect. This might include a cognitive test for example or detailed financial records.
Your Doctor and Your Insurance Company Look At Your Health Differently
And if you can't think of anyone specifically, have a look at your health insurance premium and ask yourself why is the premium so high? That's because there are employees in your group using the health insurance to get treatment for those conditions.