The 2 different application types for life insurance are mostly dictated by the type of life insurance you need. You'll either apply directly with the fund, or via a broker. Honestly, they're kind of 2 totally different products, so it's important to understand them.
If you apply directly, the life insurance application process is typically done online by you, without an adviser. The questionnaire itself is usually straightforward and requires a few details about your personal circumstances – for instance, your medical history, employment and age. You'll also need to decide how much life insurance you need and agree to certain exclusions and premium loadings.
If you apply with an adviser, the life insurance application tends to be a lengthier and more thorough process, though the adviser will do most of the work. They can work out how much and what type of cover you'll need based on your personal circumstances, clarify anything you're unsure about and talk you through what you are and are not covered for.
Whether you use a broker or go direct, you'll be asked to disclose the following information:
If you go through a broker, the insurer will take the time to confirm these details through a robust assessment, which could include a formal medical exam. If you go direct, your declarations will be enough, but they could come back to bite you if you misrepresent anything.
Start the application process by completing the paperwork with your chosen life insurance provider. You need to answer all the questions truthfully (as best you can) and you will need to sign a declaration that the information you have provided is accurate. By deliberately providing incorrect or misleading information, you risk voiding your insurance policy and leaving your family with nothing when they claim.
Some insurance companies will require you to have an actual physical examination before you're approved; others will just need you to answer questions about your medical history on your application form. If you're having difficulty remembering something about your medical history, contact your doctor for medical records.
The life insurance provider will work with an underwriting team to assess your eligibility based on your application. They'll consider your medical history, lifestyle activities, sports you engage in and occupation to work out out the premium you should pay. All of the information in your insurance application will be kept confidential.
Once your application and details have been assessed:
There are a few different ways to determine how much cover you need to take out, including using our online calculator. Another common method is to take your annual salary and multiply it by 10 (so if you make $50,000 a year, take out cover for $500,000).
You might also want to consider the immediate expenses that will need to be covered after your death – such as your funeral, mortgage repayments that still need to be made, other loans or debts that you still need to pay off, school fees and education costs for your children and a retirement fund for your partner. If you total these costs together, you will have a rough idea of how much cover you need.
The following table features brands that sell direct life insurance. These brands will generally let you apply online, and then offer you cover without having to go through a long, formal process.
We currently don't have a partnership for that product, but we have other similar offers to choose from (how we picked these ):
Life Insurance is a little complicated and a lot overwhelming. That's why we made the Finder Score, to make it easier to compare Life Insurance products against each other. Our experts analysed over 30 products and gave each one a score between 1 and 10.
But a higher score doesn't always mean a product is better for you. Your situation is unique, so your policy choice will be too. Don't think of Finder Score as the final word, but as a good place to start your life insurance comparison.
Read full Finder Score methodology
Have more specific needs, or want to make sure you get the best possible cover that will definitely pay out when you need it to? Then it might be worth speaking to a broker. The process will be longer and more work on your part, but you could have a more robust policy at the end of the day.
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Find out how the underwriting process actually works if considering taking out cover.
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Find out how smoking will impact what you pay for life insurance, and what you can do to have your premium reviewed.
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Depending on the applicant and the type of life insurance policy, there may be no medical tests required.
finder's guide to choosing between stepped and level insurance premiums.
