Whether you’re looking at purchasing term or permanent life insurance, one of your first steps will be working with your insurance agent to fill out a life insurance application. It’s not as scary as it may sound. When you are ready to fill out your application, there are a couple key things you should note about what your policy will cover, how your coverage amount is determined, and most importantly, how some of your current health conditions could affect your policy and premium.
What Does Life Insurance Do?
In the event that you would pass away, life insurance provides resources to your dependents, such as your loved ones or your business, usually in the form of replacing your income. When you decide to explore your life insurance options, you’ll have a choice between term life insurance (coverage for a specific period of time) and permanent life insurance (coverage for the rest of your life). From there, your insurance agent will walk you through the steps of understanding who your beneficiaries are and how much they would receive from the policy.
What Will the Application Process Look Like?
This is where people seem to get overwhelmed. The first step of the application process will be filling out your information, such as your name, date of birth, address, and employer information. The next set of questions gets a little more personal. You’ll be required to share your height, weight, financial information, and, finally, your lifestyle habits.
Sometimes, the information you share on your application might be all that’s needed to send the application to the underwriter. However, that’s not usually the case. More often than not, you’ll be asked to do a medical exam where a healthcare professional contracted by the insurance agency will verify that everything you reported is accurate.
This seems like a good place to throw in a plug for telling the truth. We know lying is tempting. Reporting what your smoking, drinking, or exercise habits look like can be uncomfortable. But if your policyholder finds out you’re not being honest? Let’s just say it’s not good. If your policy is approved and then the truth comes out, you could see your policy canceled or the price of your premium jump. If the insurance agency finds out you lied before they agree to take you on as a risk, they could deny you coverage and “red flag” you. With a “red flag,” other insurance agencies will likely avoid you and you can say goodbye to getting a life insurance policy.
What Health Conditions Can Affect My Application?
When an insurance agency is looking to offer you a policy, they’re evaluating what risk you present to the company. That’s why digging into your medical history and lifestyle is so important. If you’re looking to find a policy and you have one or more of these common health conditions, know that it can – and probably will – impact your policy and premium:
Anxiety
For insurance companies, anxiety can be the onset of psychological and physical complications. Depending on the severity of a person’s anxiety, what medications they’re on, current psychiatric treatments, and history with the disorder will determine its effect on the policy.
- Anxiety sufferers will be marked as preferred best/preferred plus if their condition is mild and they’ve had very little issues with the disorder (no medications or psychiatrist services). These cases will receive the best premium rates.
- Moderate anxiety cases will be deemed standard premium rate classifications if a patient is on any medications, has been to a psychiatrist, or has been hospitalized due to their anxiety.
- If you have a severe case of anxiety that has lead to any suicidal thoughts or attempts, you will be a table-rated rate classification that will result in higher premiums.
High Cholesterol
Cholesterol is the waxy substance that comes from eating meats, poultry, and full-fat dairy products. When your body has excess cholesterol, it can begin building up inside your arteries, making your heart work harder trying to circulate your blood. Your cholesterol levels are a window into your health. Insurance agencies have varying cholesterol standards, but here are some of the generalizations:
- Cholesterol is a way to better understand your health risks down the road, such as your likelihood of developing heart disease.
- There are standard rates for men and for women, as women’s cholesterol levels are typically higher.
- Insurance companies are going to be interested in your total blood cholesterol level and the ratio of your total cholesterol to your HDL cholesterol.
Heart Disease
Problems relating to the heart and blood vessels fall under the category of heart disease. When you hear the term heart disease, it’s usually referring to the buildup of plaque in the vessels making it difficult for the heart to circulate blood properly. This clogging of the vessels can lead to health problems such as heart attack or stroke. For insurance companies, they will be looking at the following factors to determine if they will cover you and your insurance rates:
- Severity of your illness.
- The history of your heart problems.
- Your treatment of the disease and your current condition.
Obesity
Even though you may consider yourself a healthy individual, insurance companies look at obesity as a risk factor that could lead to ailments such as heart disease, diabetes, and high blood pressure. Depending on your weight, height, and sex, an insurance company may deny you a policy or classify you into a higher premium category.
Acid Reflux
If the symptoms of Acid Reflux become chronic, then you could be dealing with Gastroesophageal Reflux Disease or GERD. Over time, GERD can cause your esophagus’ lining to mimic that of your stomach, which could lead to higher risk of some cancers. That said, life insurance premiums and coverage could vary depending on:
- The severity of the acid reflux.
- The length of time you’ve had the disorder.
- What medications you’re taking for your acid reflux or GERD.
Finding a life insurance policy can be daunting, but we’re here to help find the best coverage for you. If you have any of these conditions, or general questions about applying for a life insurance policy, give our agents at Doyle & Ogden a call at 616-949-9000. With connections at over 10 insurance companies, we’ll help you weigh the pros and cons to help you find the best policy at the best price.
