Life Insurance Applications: How Often Can You Apply?

Life insurance is a legal document that provides financial protection for your loved ones after your death. The application process involves filling out paperwork, taking a medical exam, and providing health histories for yourself and your immediate family. The lower the risk you present to the insurer, the lower your premiums will be.

There are two main types of life insurance: permanent and term. Permanent life insurance policies do not have an expiration date, whereas term life insurance only covers a set number of years. A medical exam is usually required, but you may be able to purchase a no-exam policy at a higher premium.

The application process can be lengthy, and it's important to be honest and accurate when filling out the forms. Lying on a life insurance application is a form of fraud and can result in legal consequences.

How often can you apply for life insurance?

There is no limit to how often you can apply for life insurance, but there are several factors to consider before submitting multiple applications. Firstly, it's important to understand the life insurance application process and the potential impact on your eligibility and premiums. Each application requires providing personal and medical information, and undergoing a medical exam in most cases. Being transparent about your health, lifestyle, and family history is crucial, as misrepresentations or inaccuracies may result in claim denials or increased premiums.

The frequency of your life insurance applications may also be influenced by the type of policy you seek. There are two main categories: permanent life insurance, offering lifelong coverage, and term life insurance, which covers a set period. "No-exam" policies are available but tend to be more expensive and offer lower coverage amounts. Additionally, the contestability period, typically the first two years of a policy, is crucial. During this period, insurers can closely review claims and medical records, potentially delaying payouts or resulting in increased scrutiny of your application history.

Before submitting multiple life insurance applications, it's advisable to carefully assess your coverage needs, compare different policies, and ensure you meet the eligibility requirements. Shopping around and consulting with agents or brokers can help you find the most suitable coverage for your circumstances. Keep in mind that your age, health, lifestyle choices, and medical history are significant factors in determining premiums and your likelihood of approval. Therefore, if you're applying for multiple policies to increase your chances of obtaining coverage, it's essential to provide accurate and consistent information to avoid any issues.

In conclusion, while there is no limit to how often you can apply for life insurance, it's important to approach the process strategically. Be diligent in your research, honest in your applications, and mindful of the potential impact on premiums and eligibility.

What is the process for applying for life insurance?

The process for applying for life insurance can be done through a broker or agent, or directly with an insurance company. The application will ask for basic information such as your name, address, occupation, and employer. It will also ask for personal information, including lifestyle habits, health history, and financial information.

The Medical Exam

Most companies and policies require an in-person medical exam. A life insurance agent will arrange for a paramedical examiner to meet you at your home, office, or a clinic selected by the insurance company. During the exam, the paramedical examiner will record your medical history, take your vital signs, and collect blood and urine samples. The exam should take less than 30 minutes, and the insurer usually covers the cost.

The Review Process

After submitting your application, an underwriter at the insurance company will review it, along with your medical exam results. They may also order medical records from your physician to learn more about your health. This process can take a few weeks. The underwriter will determine your risk class, which will impact the cost of your coverage.

Traditional vs. Simplified Underwriting

There are two types of underwriting: traditional and simplified. Traditional underwriting involves filling out an application and undergoing a medical exam. Simplified underwriting typically involves a quick online application and does not require a medical exam. Simplified underwriting is often faster and has a higher approval rate, but it may be more difficult to get higher coverage limits and it typically costs more.

After the Application

Once your application and medical exam have been reviewed, the insurance company will approve or deny your request for coverage. This process can take a few days to several weeks, depending on various factors. If approved, you will need to pay your first premium and sign the policy for the coverage to take effect.

What are the medical questions on the life insurance application?

When applying for life insurance, you can expect to be asked a series of questions about your health, lifestyle, and daily habits. Here are the types of medical questions you may encounter on a life insurance application:

Current Health and Medical History:

• Medications: You will likely be asked to disclose any medications you are currently taking, including prescription and over-the-counter drugs. Be prepared to provide the full name of the medication, the dosage, and how often you take it.
• Surgeries and Medical Procedures: The application may inquire about any surgeries or medical procedures you have undergone in the past.
• Family Medical History: Expect questions about the health history of your immediate family members, including parents and siblings. This may include inquiries about heart disease, high blood pressure, diabetes, and cancer, especially if these conditions occurred at a young age.
• Personal Medical History: In addition to your family history, you will also need to provide information about your own medical history. Be prepared to disclose any medical conditions, illnesses, or injuries you have experienced, along with the dates, symptoms, diagnoses, treatments, and dates of recovery.
• Hospitalizations: The application may ask if you have been hospitalized within a certain time frame, such as the past five years.
• Tobacco and Alcohol Use: You will likely be asked about your use of tobacco and alcohol. It is crucial to provide truthful answers, as failure to do so could void the policy.
• Drug Use: The application may inquire about your use of illegal drugs, both in the present and in the past.

Lifestyle and Habits:

• High-Risk Activities: Activities such as skydiving, rock climbing, scuba diving, racing, and piloting a plane are considered high-risk. The application will ask about your participation in these activities to assess the level of risk associated with your lifestyle.
• Travel: The insurance company may want to know if you have recently travelled or plan to travel outside the country in the near future.
• Exercise and Diet: Your level of physical activity and dietary habits may also be assessed as part of the overall evaluation of your health and lifestyle.
• Driving Record: Your driving record, including any traffic violations, speeding tickets, or DUIs, can impact your life insurance premiums.

It is important to note that the specific questions may vary depending on the insurance company and the type of policy you are applying for. Additionally, some companies may require a medical exam as part of the application process, which may include vital sign checks, blood tests, and further medical history inquiries. Providing honest and accurate information is crucial, as misrepresenting or omitting information could lead to denial of coverage or benefits.

What is the life insurance medical exam?

A life insurance medical exam is a routine part of applying for life insurance. The exam is similar to an annual physical checkup and helps the insurance company determine the risk of applicants, including their expected life expectancy. This helps insurers price life insurance policies accurately to protect themselves financially. The exam is quick and convenient and can be completed in 15 to 45 minutes. It includes a verbal questionnaire and a physical exam.

The Verbal Questionnaire

During a phone interview, you will be asked a series of questions about your health, lifestyle, and social habits, including current prescriptions. Be prepared to answer questions about your medical history, past and current prescriptions, and your family's medical history.

The Physical Exam

The physical exam will be conducted by a certified paramedical professional, who will measure your height, weight, and blood pressure, and take blood and urine samples. The blood and urine tests assess you for several medical conditions, including elevated cholesterol, high blood pressure, HIV/AIDS, hepatitis, hyperglycemia or elevated glucose, organ issues, and prostate cancer (for male applicants over 50). The blood and urine tests also screen for drug use, including nicotine, which can affect your application approval and premiums.

Additional Tests

Depending on your age, the type of policy you want, and the amount of coverage you're applying for, you may need to undergo additional tests. These could include an electrocardiogram (EKG), a chest X-ray, or a treadmill test. If you're over 70, you might also be required to take a cognitive test.

Preparing for the Exam

While you won't be able to make major changes to your health before the exam, there are some steps you can take to prepare:

• Avoid salt, high-cholesterol foods, and over-the-counter medications 24 hours before the exam.
• Refrain from alcohol and strenuous exercise 12 hours before the exam.
• Avoid caffeine and nicotine one hour before the exam and drink a glass of water instead.
• Schedule your exam for the morning, as most exams require fasting for at least 12 hours beforehand.

What are the ways to reduce your life insurance premium?

There are several ways to reduce your life insurance premium. Here are some strategies to lower your costs:

• Improve your health: Your health is a significant factor in determining life insurance premiums. Making positive lifestyle changes such as losing weight, improving your diet, exercising regularly, and avoiding tobacco and alcohol products can lead to lower premiums. Some insurers even offer incentives for policyholders who actively engage in wellness activities.
• Apply early: Applying for life insurance early on when you are young and healthy can help lock in cheaper rates. The younger and healthier you are, the lower the premiums will be.
• Choose term life insurance: Term life insurance is generally more affordable than permanent or whole life insurance. Term life insurance is simpler and easier to manage, and provides coverage for a specific term, such as 10, 20, or 30 years. Permanent policies, on the other hand, offer lifelong coverage and accumulate cash value but are more expensive.
• Pay annually: Paying your life insurance premiums annually instead of monthly can sometimes result in savings of up to 5%.
• Bundle policies: Many insurance providers offer discounts for customers who bundle multiple policies, such as combining life insurance with auto insurance or homeowners insurance.
• Consider a no-exam policy: Traditional life insurance policies often require a medical exam. However, some insurers now offer no-exam policies that can be a convenient and cost-effective option, especially for those with minor health issues. While these policies usually have higher premiums, they may be offered at a lower rate than traditional policies for those with pre-existing health conditions.
• Re-shop your policy: If your health has improved since you first applied for life insurance, it may be worth re-shopping the market. Your improved health could mean you are eligible for a lower rate from another insurance company.
• Reduce your coverage amount: If you have had your policy for at least a year, you may be able to ask your insurer to lower the coverage amount, which would result in lower premiums.
• Assess your coverage needs: It is common for people to overestimate the amount of coverage they need. By right-sizing your coverage, you can lower your premiums. For example, if you have paid off your mortgage or your children are now financially independent, you may not need as much coverage as before.
• Compare quotes from multiple insurers: Shopping around for life insurance is essential as premiums can vary significantly between providers. Use online comparison tools or consult an independent insurance broker to get quotes from multiple companies.

Frequently asked questions