Life insurance is a crucial tool for protecting your loved ones' financial future. But if you're applying for life insurance coverage, you may be wondering why the insurance company needs to know about your medical history. After all, what does your health have to do with life insurance?
The truth is your medical information is a critical factor that life insurance companies use to determine your eligibility for coverage and your premium rates. Here are some reasons why life insurance companies need your medical information:
Assessing Risk: When you apply for life insurance, the insurance company needs to assess the risk of insuring you. Your medical history provides valuable information about your health and the likelihood that you will pass away during the policy term. If you have a pre-existing medical condition or engage in risky behavior, the insurance company may consider you a higher risk and charge you a higher premium.
Determining Coverage Amount: Your medical information can also help the insurance company determine how much coverage to offer you. If you have a history of chronic illness or a family history of health problems, the insurance company may offer you less coverage than someone who is in excellent health.
Underwriting Purposes: Life insurance companies use your medical information for underwriting purposes, which includes the process of evaluating your risk and determining your premium. They may also use this information to decide whether to approve your application or deny it altogether. MIB's (Medical Information Bureau), provide an alert when an individual applies for an insurance policy. If an underwriter receives information from MIB about an applicant, the underwriter is required to further investigate the individual's medical history before making any adverse underwriting decision. The information received from the MIB report may or may not have been included on the application.
Fraud Prevention: Life insurance companies may request your medical information to prevent fraud. For example, they may check your medical records to verify your health status or confirm that you are not misrepresenting your medical history.
It's essential to be truthful and accurate when providing your medical information to the life insurance company. Failing to disclose or misrepresenting your medical history can result in a denial of coverage or a claim being denied in the future. Remember, life insurance is designed to protect your loved ones' financial future, so it's crucial to provide the most accurate information possible to ensure you have the coverage you need.
One of the advantages of working with an Independent Broker, such as myself, is that I have access to several carriers and can search the carriers that offers the best coverage for you, even if you have pre-existing conditions such as high blood pressure or diabetes.
Looking forward to the opportunity to serve you and your family.
Ivonne Cabrera
Independent Life insurance Broker
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