Life insurance is one of the best safety nets that you could ever purchase for your loved ones. It’s the best way to ensure that your family has the resources that they need, regardless of what happens to you. If you didn’t have life insurance, your family would be left with a massive amount of debt and final expenses. Nobody wants to think about his or her own death, but it’s vital that you plan for the worst.
When a person applies for life insurance, there are a number of different parameters that the insurance company’s underwriters will review prior to issuing the applicant a policy. These primarily have to deal with the individual’s health and health history. However, they also can include other aspects of the applicant’s life, such as his or her family health history, their hobbies and habits, and whether or not they have any other life insurance policies in force.
The primary reason that the underwriters check on these issues is to determine the individual’s anticipated life expectancy. This is because the life insurance company is essentially taking a “risk” on the applicant in terms of having to pay out a potentially costly claim should the individual pass away while they are insured. With that in mind, the insurance company wants to be sure that they are making the best choice possible. Continue Reading