Broker Check

Life Insurance

Life insurance can help ensure that your dependents have the resources they need to replace your income if you die. However, how can you get coverage purchased? And what can you do to achieve the best rate? Understanding the life insurance process will help you get your coverage at a reasonable price. 

 Key Requirements

  • Most life insurance policies will require you to answer medical questions and submit to a medical examination.
  • "No-examination" policies do exist, but they usually cost more and have a lower face value.
  • It is essential that you tell the truth during the application process, or that a death benefit may be denied to your beneficiaries.

 Identify your life insurance requirements.

There are two main life insurance categories: permanent life insurance, cover for your entire life, and term life insurance, which provides coverage for a set period. A local insurance broker can help you grasp your options.

You will have to calculate your payout amount by calculating how much your survivors will require when you pass and how much you have already insured by personal assets or community life insurance (such as a package provided by your employer).

The amount of life insurance coverage you'll need depends on various factors, including your dependents' age, earning potential of your partner, any debt you may have, and your combined financial resources.

 Health issues relating to life insurance

You'll really need to apply for life insurance. The application may request necessary details such as your name, your address, and your employer. It will also require the following personal information:


  • Height
  • Bodyweight
  • Birth date •
  • Patterns of lifestyle (smoking, drinking, exercise);
  • Financial details regarding your net worth and taxable profits


While lying about your weight or other health issues may be tempting, telling the truth is essential. If the insurer learns that you're lying about a health condition or lifestyle, it may increase your premium, terminate your policy, and refuse a beneficiary claim to the death benefit.

Most insurance providers will consider the responses to health-related questions on the form, such as which medications you are taking or any surgeries you have had. Such no-exam life insurance plans – such as guaranteed life insurance and more straightforward life insurance issues – are typically more costly and have a lower face value than insurance that needs medical review.

 Medical Life Insurance Exam

Many businesses and initiatives require a medical test in-person. A life insurance provider must arrange to meet you at your home, office, or clinic chosen by the insurance company with a paramedic (a licensed healthcare professional hired by the insurance company).

During the test the paramedic is likely to:


  • Take your medical history (including medical issues, surgical techniques, and prescription drugs)
  • Inquire about the medical records of your immediate family
  • Blood pressure take
  • Hear the heartbeats
  • Check your weight and height
  • Blood sample drawing
  • Get a sample of your urine
  • Ask your health about lifestyle habits (e.g., exercise, smoking, drinking, recreational drug use, frequent travel, high-risk hobbies)


You may need to undergo additional tests depending on your age, the type of policy you want, and how much coverage you’re applying for. Other tests might include an EKG, an X-ray in the chest, and a test treadmill.

Next, an insurance policy underwriter must review the findings of the claim and medical test. They may order your doctor's medical records to learn more about any medical conditions you may have and whatever treatment you receive. This knowledge allows them to decide what financial risk you pose to the company and how much to charge for coverage.


If you lie about a medical condition, you will not only be denied coverage by the insurance provider, but you may also be "red-flagged," meaning that insurers may know you have been denied coverage because you were lying.

After reviewing your application and medical report, the company may accept or refuse your request to buy cover. The process may take days or weeks, depending on whether you've submitted a full application, how long it takes to obtain test results, whether your doctor asks for details from the business, etc.

 If you are denied coverage

If you "fail" the medical test and the insurance provider refuses to cover you — or if it decides to cover you at a higher rate because of your examination results — you have a few choices. With your boss, who also does not allow a medical test, you should seek community term life insurance, ask the insurance provider whether a firm can work with the medical history, or offer a scheme with a no-exam. If a policy is provided, but you are not pleased with the cost, you can buy it for now and then ask to be re-evaluated at a future date (and improve your health at that time). And you can, of course, inquire with more than one insurance company.

 Ways to reduce your premium life insurance

While you can't do much about two of the three significant factors that impact your insurance premium (age and family history of medicine), you can take steps on the third: lifestyle. If you: You will reduce your insurance premium

  • Stop smoking. You are likely to live longer as a non-smoker, which means that the life insurance provider will have more years to receive the premium premiums before paying out on the policy when you die.
  • For weight loss. Weight loss also results in lower cholesterol levels, lower blood pressure, and a reduced risk of developing chronic diseases such as diabetes. All these improvements to your health can put you at a better chance for insurance.
  • Eliminate or reduce your alcohol intake. Drinking can pose a potential threat to your health. To get a picture of your drinking habits, life insurance firms will review your resume, driving record, and medical test. Drinking less alcohol, or quitting entirely, makes you less of a liability to the organization, and therefore you will generally be compensated with a lower premium.
  • Improve driving experience. If you have multiple moving violations, insurance companies can raise your premium.

 Specific ways of reducing insurance premium relating to non-lifestyle include:

  • Change from fixed life insurance to contract life insurance. You may want to consider moving to a term policy, depending on your age and how long you expect life insurance coverage. Check the existing coverage cancelation policy before making a change to it.
  • Insurers turn over. With less money, you could get equivalent or better coverage.
  • Riders excluded. Riders are optional policy provisions that pay you or your beneficiaries extra money. Rider Types include:
  • Accidental death benefit rider-pay your heirs if the accident resulted in your death
  • Life insurance protection for children — paid if a child protected by the life insurance policy dies
  • Premium rider waiver — pay the insurance fee if you are permanently and fully disabled
  • Living benefits rider — pay a portion of your death benefit if you are diagnosed with a terminal disease or need long-term care or home nursing services
  • Payor rider — waives premiums if you die or become disabled before a child with coverage reaches a certain age.


  • Looking for policies such as "no-load" or "low-load." Sometimes such plans are less costly since insurance brokers charge a flat rate instead of a high commission.
  • Ask for discounts on the payments. Instead of paying weekly, you can get a discount to pay your bill in full annually. Insurers can also offer a refund to get your premium deducted from your checking account automatically.
  • Get your credit report checked. Insurance firms will check your credit report when calculating your rate. As noted in your survey, paying your bills on time ensures the company that you are likely to pay your premium in full and on time.
  • Choose a firm with experience serving individuals with your illness. If you have a medical problem, a broker will help you locate a business that is willing to work with you and can deliver a better rate.
  • Check your Bureau Medical Records document. Insurers share information about the medical conditions of applicants through the Office of Medical Information (MIB). Order and review a free copy of your file from the MIB website; incorrect details could harm your prime.