Are you thinking about buying life insurance? You will want to know more about how to apply. After all, there is no point doing a life insurance comparison if you are ineligible! Here is what you need to know about life insurance eligibility.
Who can apply for life insurance?
You need to satisfy citizenship or residency criteria. Australian or New Zealand citizens can apply. Anyone with an Australian Permanent Residency Visa or long term working visa can also apply. Are you a permanent Australian resident? You are also eligible.
Your age can also be a factor. There may be minimum and maximum age criteria. Be sure to check this when you compare life insurance options.
What will I be asked in the application?
Insurers will ask a range of questions. This is to help them decide whether they are prepared to cover you. These will usually focus on your medical history, lifestyle and occupation. Are you applying with a partner? They need to answer these questions too. You cannot apply on their behalf so they need to be present.
Medical history. This will include medication details as well illness and injuries. Family medical history is also used to assess your risk factor. A family history of certain conditions will make you a higher risk.
Lifestyle. Your lifestyle will also feature heavily. Expect to be asked whether you smoke and drink. These questions determine whether you are at risk of lifestyle conditions.
Occupation. Your job can have an impact too. Certain occupations are considered high risk.
Factors such as these will also impact on life insurance premiums. Don’t be tempted to twist the truth or lie to get cheaper premiums. Be clear about pre-existing conditions even if they will up your premiums. If you are found to have been dishonest, any future claims will be invalid.
Do I need medical or blood tests?
The application will usually provide enough detail. Some insurers may ask you to have medical tests as well. You may need to do this depending on your age and level of cover. This is not the case across the board though. The insurer will usually pay if tests are needed.
Even if this is not needed initially, it may be later. Evidence may be needed if you make a claim. This can include medical evidence. If you claim because of illness or injury, proof of diagnosis is needed.
How to apply
You can usually apply online or on the phone. This can take a matter of minutes. It may take longer if you have a complex medical history to go through.
Could my application be rejected?
You could be declined life insurance depending on your application. If this happens, it will usually be because you were deemed too risky to insure. This does not mean that you will not be offered cover though. You could be offered life insurance at increased premiums instead. Other alternatives could be to reduce your cover level or exclude certain conditions.
Knowing what to expect is crucial when you look to compare life insurance. For most people, the application process is simple. This is especially true if no medical tests are required. Not keen on the idea of having a medical? This is even more reason to do a life insurance comparison. Many insurers do not require one so shop around!
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