Looking for permanent life insurance? Please give us a call at 425-242-5252.
One you have decided to purchase term life insurance, you’ll need to determine your coverage amount – how much your surviving beneficiaries will need after you die. Selecting the right coverage depends on several factors, including the age of your dependents, your spouse’s financial ability and your combined financial assets. Most insurance companies limit the coverage amount to around 20 times your annual income. This means if you make $50,000 per year, you may not qualify for over $1,000,000 in coverage. There are certain exceptions to that rule so please talk to one of our agents to find out more.
Tips for the Application Process
When applying for a life insurance policy, you will be asked to provide some or all of the following pieces of information:
- Your name
- Your address
- Your job
- Height and Weight
- Date of birth
- Lifestyle habits (i.e., smoking, drinking, exercise)
- Financial information, including your annual income and net worth.
Some insurance companies will accept your answers to health-related questions on the application. However, most companies require an in-person medical exam. We will arrange for a paramedical (a licensed healthcare professional contracted by the insurance company) to meet you at your home, office or a clinic selected by the insurance company.
During the exam, the paramedical will likely:
- take your medical history (including medical conditions, surgeries and any prescription medications)
- ask about your immediate family’s medical history
- take your blood pressure
- listen to your heartbeat
- check your height and weight
- draw a blood sample
- get a urine sample
- ask about lifestyle habits that could affect your health (such as exercise, smoking, drinking, recreational drug use, frequent travel or high-risk hobbies)
Next, an underwriter at the insurance company will review your application and medical exam results. He or she may order medical records from your physician to learn more about any medical conditions you may have and any treatment received. This information helps them determine how much to charge you for coverage. If you lie about a medical condition, the insurance company may not only deny you coverage but may also “red-flag” you, meaning that other insurers will know you were denied coverage because you lied.
Once your application and medical exam have been reviewed, the company will either approve or deny your request to purchase coverage. That process can take days or weeks, depending on if you have submitted a complete application, how long it takes to receive lab results, if the company requests information from your physician, and so on.