Things To Avoid When Applying For A Life Insurance Policy

A few weeks ago, one of my good friends gave me a call about a rather unfortunate situation. His dad wanted to increase his life insurance policy coverage with his existing insurer. They were more than happy to do it obviously and only asked him to do a physical which he did. During the physical, the doctor asked him if he’d like anything more tested. He said he wanted to do an extra test on his heart.. BIG Mistake. Guess what, they found an anomaly. The insurance company accepted the increased coverage but was charging thousands of dollars more per year!

Of course, it was a good thing that he found the anomaly and he will do further testing to find out if there is actually a problem. But sine his insurance company had not asked for this specific test, it was a major mistake to ask for it on that day.

Be Smart When You’re Applying For Life Insurance

It never ceases to amaze me. Buying life insurance is a process that goes on for a few weeks. During that time, there are a few different things that are critical to do:

Eat Well: You will have physicals that will look at your general health. Obviously, eating salad once or twice will not have much of an effect on your overall health but it makes sense to put every chance on your side. Try to eat healthy food, avoid excess alcohol, etc.

Stay Away From “Dangerous” Activities: Ideally, if you’re thinking about going for a parachute ride, trying bungee for the first time or anything of that type, you should wait to have your policy and not discuss it

Don’t Lie: This is something I’ve discussed several times, it’s important when you’re buying your policy to be honest because if ever you do end up making a claim, having lied can make a big mistake. Smoking once in a while is NOT being a non-smoker for example.

Don’t Take Unnecessary Tests: My friend’s dad had a great idea to do such a test. What wasn’t as smart was doing it while in the middle of a life insurance purchase process. He could and should have simply waited to get the answer from his insurance company to do additional tests. Stick to whatever is being asked, nothing more.

These certainly sound like very simple guidelines but they can end up making a huge difference in the profile that the company will use to determine your premium.

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