The Disclosures Required in Life Insurance
Applying for life insurance requires the disclosure of multiple aspects of your personal history. For an insurance carrier to properly assess the financial risk posed by insuring your life, information that would otherwise be considered private and confidential must be revealed in order for proper and accurate analysis to be conducted.
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Medical History
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Your current and prior health status presents the most important factor in evaluating whether you are insurable. Underwriters must take into consideration conditions that are known to shorten lifespan, or treatment of symptoms related to such conditions. Disclosure of any surgical procedures, prescription medications and diagnoses is required as part of the application process.
Family History
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Insurance carriers require disclosure of any knowledge you may have about the health status and medical conditions of certain family members. Since many life-threatening ailments are genetically passed, insurance companies seek the medical history of your biological parents and siblings.
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Criminal History
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A criminal past concerns life insurance underwriters, but it may not entirely exclude you from obtaining coverage. The type and number of convictions in your record, along with the duration between the application date and last offense, combine to give carriers a better impression of your risk profile. Disclosing any criminal convictions or offenses is a requirement of most major life insurance carriers.
Driving History
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Patterns of DUI charges, careless and reckless driving incidents, license suspensions, and at-fault accidents will increase your life insurance premium. Carriers require disclosure of driving history and obtain summaries from your state's motor vehicle department. This information is analyzed and added to your growing risk profile, which ultimately leads to classification and underwriting categorization.
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References
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