Depending upon the amount of death benefit you are applying for (from low to high) the answers to your question may run from "being able to fog a mirror, sign and pay" to "a physical exam with lab work and a review of medical records required" statement. A $10,000 term life policy presents far less risk to the insurance carrier than a $1,000,000 term life policy does.
So, you qualify for coverage under the policy and underwriting provisions in effect for the term life insurance product you are purchasing. Depending upon whether the policy is group or individual, for smaller term life amounts (e.g. - $5000 to $50,000) the coverage might be guaranteed issue (no medical questions) or simplified issue (a few yes/no medical condition questions that determine if the policy is qualified for or denied). Generally cheap and not that hard to get.
For term life insurance with high face value amounts (e.g. - $1 million) then the applicant should expect to have to go through virtually the same application process from a medical exam perspective as they would with a permanent life insurance policy. This would almost certainly entail having your height, weight, general appearance and answers to some medical questions noted as well as having blood and urine specimens taken. A more comprehensive physical exam could be required.
Once you have passed or largely passed the medical and other criteria applied in underwriting a large value life insurance policy, the life insurance carrier's original offer is either finalized or a counteroffer/withdrawal is made proposing revised rates and/or benefits for coverage to that individual in light of their risk profile. Once you have formally accepted an offer or counteroffer and submitted your first month's premium then you are issued a policy.
There are several indicators that an underwriter will look at to determine your qualifications to purchase term life insurance. The underwriter will look at your age, build, health status, life style, occupation, income and finances to determine how much life insurance you may qualify for along with the length of term and premiums or rate to be paid.
That is a great question! In most cases, there is a simple application, and possibly a short telephone interview. The standard prescription and medical history inquiries will be made also. For larger face amounts a para-med exam may be ordered, in which case you can expect drug screens, blood and/or urine and/or hair samples, along with heart and blood tests. There may be more or less of these done, according to your answers and the companies standards. I hope that helps, thanks for asking!
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
All life insurance policies require some underwriting information. It could be as simple as a couple of question to as complex as medical tests. The purpose of the medical information is to determine if you fall within the range of health that was anticipated by the actuary when the standard insurance premium was determined. Of course the companies are much more cautious when large amounts of insurance are involved.
How you qualify for term life insurance depends on the type of policy you apply for. If you apply for a guaranteed issue policy, you only have to be within an age range and apply for an allowable face amount. If you apply for simplified life insurance, you usually need to answer a limited number of health questions and do a phone interview. With a medically underwritten policy, you must pass a free life insurance exam. The underwriter may also review your medical records to determine if you fit the health guidelines to get that type of policy.
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So, you qualify for coverage under the policy and underwriting provisions in effect for the term life insurance product you are purchasing. Depending upon whether the policy is group or individual, for smaller term life amounts (e.g. - $5000 to $50,000) the coverage might be guaranteed issue (no medical questions) or simplified issue (a few yes/no medical condition questions that determine if the policy is qualified for or denied). Generally cheap and not that hard to get.
For term life insurance with high face value amounts (e.g. - $1 million) then the applicant should expect to have to go through virtually the same application process from a medical exam perspective as they would with a permanent life insurance policy. This would almost certainly entail having your height, weight, general appearance and answers to some medical questions noted as well as having blood and urine specimens taken. A more comprehensive physical exam could be required.
Once you have passed or largely passed the medical and other criteria applied in underwriting a large value life insurance policy, the life insurance carrier's original offer is either finalized or a counteroffer/withdrawal is made proposing revised rates and/or benefits for coverage to that individual in light of their risk profile. Once you have formally accepted an offer or counteroffer and submitted your first month's premium then you are issued a policy.