Getting life insurance today is much easier than ever before. The in-person medical exams are a thing of the past, mostly due to the expense side of it for insurance companies, but that doesn’t mean you’re off the hook.
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You’ll have to answer in-depth interview questions and if you don’t answer them right, you could be without insurance. How do you know how to answer the interview questions appropriately without running the risk of losing your eligibility?
Is there a top-notch secret that you need to learn? We’ll help you learn how to pass the interview questions with flying colors below.
What Should You Expect?
Once you apply for life insurance online, expect a phone interview. The phone interview gives life insurance companies a more in-depth look at your life. It helps them not only determine if you’re eligible but also the rates they’ll charge you as they base premiums on the risk of a payout, aka how soon you might die.
Fortunately, the phone interview isn’t anything to fear. It’s a series of basic questions that you should have the answers to relatively quickly.
What information do you need?
Before your phone interview, gather the following documents to make the process as simple as possible:
- Driver’s license
- Social Security card
- Bank and investment statements to discuss your net worth
- Information about liabilities, such as credit card statements and mortgage statements
- Any pertinent medical records (surgery records, serious illness records)
- Prescription records including the names of the medication and dosage
- Contact information for your doctors
- Medical information from any family members with serious illnesses or recent deaths
- Calendar or datebook to confirm dates of your last doctor’s appointment and medical procedures
- Information about any hobbies you have that may endanger your life (skydiving, scuba diving, etc.)
If you have a colorful health history, you may consider ordering your MIB report. Each consumer can request their MIB report once annually. Insurance companies use this report, which contains all of your healthcare information provided by doctors and hospitals for the last 7 years, to determine your eligibility for insurance.
As the interviewer asks you questions, he/she will compare your answers to the findings of the MIB report. If something is ‘off,’ it sets off a red flag for the insurance company and could lead to a denial.
Here’s an example:
Fred has high blood pressure. His doctor diagnosed it and prescribed medication for it. This was 12 months ago. Fred now applies for new life insurance because his existing term life insurance policy expired. Fred doesn’t disclose the fact that he has high blood pressure to the new company. The interviewer asks him about it and Fred claims, ‘he forgot.’ The insurance company may dive further into all of the other answers Fred provided, or they may cancel his application.
Now here’s the anxiety-provoking part – the questions. How you answer them determines your eligibility and premiums. We know it may seem scary, but just answer the questions as honestly as you can. You never want to commit insurance fraud, so if you are unsure of an answer, be honest about it and find the answer rather than lying.
Here are some questions to expect:
- Do you currently have life insurance in place? If so, what type of policy and when does it expire? Will this policy replace or be in addition to your existing policy?
- Will you use the values of any whole life insurance policies to cover the premium on this policy?
- What is your net worth?
- What is your mother’s and father’s age if alive?
- If either your mother or father passed away, at what age did they pass away, and why?
- Do you have siblings? Are they alive or deceased? If deceased, what was the cause?
- What is the name and contact information for your doctor?
- What are the names of any medications you currently take?
- What is your occupation?
- The interviewer may ask more in-depth questions about your occupation if it’s deemed ‘dangerous.’
- Do you have any ‘risky’ lifestyle habits, such as operating an aircraft, snowmobile, motorcycle, or motorboat? Do you skydive, mountain climb, or parachute? Do you have plans to participate in any of these activities within the next 2 years?
- Has your license been suspended or revoked in the last 3 years?
- Have you had more than 3 moving violations?
- Have you caused or been involved in more than 2 accidents as a driver?
- Have you had any criminal offenses in the last 10 years?
- Have you or do you plan to travel outside of the United States?
Watch What you Say
There’s a fine line between telling the truth and saying too much. Answer the interviewer’s questions carefully and honestly without divulging too much. For example, if you recently gained or lost an extensive amount of weight, you may not want the insurance company to know this.
If it’s due to illness – yes, you have to disclose it. But, if it’s because you hid that mid-life crisis and decided now was the time to join Beachbody or go on the keto diet and you lost 50 pounds, that’s not a health risk. But, telling the insurance company that you now weigh 150 but you weighed 200 pounds last year may prompt them to ask more questions as rapid weight loss is a sign of an illness.
Each life insurance company has its own interview questions, but these are the general questions you’ll need to answer. Having the answers right away is crucial to a speedy approval process. Remember, don’t talk too much, but don’t omit the truth. Insurance fraud is a real thing and can land you in a lot of trouble.
Answer your insurance questions honestly and with confidence by having the necessary documents with you when participating in the interview. Don’t forget, if one insurance company turns you down, the chances are that there’s another company just waiting in the wings for your business.