What information will I be asked for when buying Life Insurance?
If you ask us to quote for your business, our initial quote assumes that you are in reasonable health for your age. (These are known as ‘Standard Terms’.) If you like our quote and want to proceed, you will then have to complete an application form from the chosen life insurance company. This application form will ask for information about your health. This is because the life insurance company needs to assess whether you are an acceptable risk.
If you, or any members of your blood family have had a history of illness, the life insurance company may wish to check on your general state of health before deciding whether they will accept your business on their Standard Terms. This health check may be in the form of a letter to your Doctor and/or they may ask you to undergo a medical (at their cost!).
If following their enquiries, the life insurance company thinks you represent an above average risk, they will ‘Rate’ you and require you to pay a higher premium than their ‘standard terms’. With some illness histories they may even decline to provide the applicant with any insurance!
If the life insurance company does request a medical it does not automatically mean that they are going to charge you higher premiums. Nor does it necessarily mean that they are concerned about your health – some companies ask for medical simply because the sums to be insured are high.
Life insurance often requires a medical and a family background check into hereditary conditions. Again the greater the sum insured, the greater the chance of a medical and background check being requested.