When applying for a life insurance policy, you will be asked to answer numerous questions. Each question is designed to provide underwriters with the information they need to determine the level of risk they will take by issuing an insurance policy on you.
Types of Questions Asked
For the most part, each question falls into one of two categories.
Health-Related Questions
The first is the health-related questions you might be most familiar with. Questions including height and weight, family history, and medical records all help paint a picture of your personal well-being.
Safety-Related Questions
The second category of questions concerns your safety. Insurance companies want to know if you are putting yourself at risk through activities you participate in such as:
- Certain travel
- Illegal activities
- Extreme activities
- Dangerous hobbies
- Drug or alcohol use
- Specific occupations
While it may seem obvious why insurers may not want to provide coverage for a professional skydiver, applicants are often taken aback when coverage is denied due to their travel behaviors.
Considerations for Travelers
Insurance companies will match the countries you have visited, or plan on traveling to, against those deemed by the US Department of State as high-risk. Civil unrest, disease outbreaks, and natural disasters are a few of the reasons a company may deny coverage. If you travel outside the United States for long periods of time, the question of residency may come up as well.
But, if all questions have been answered honestly and in good faith, there is little an insurance company can do to deny payment of your benefit if you were to die while traveling. The only exception that may still be found in a few life insurance policies is an exclusion for death caused by war or military conflict, although such exclusions have become much less common in recent years.
How Should You Proceed?
Honesty is the best policy when it comes to applying for insurance. If you travel frequently, in addition to life insurance, you may want to consider travel insurance as well which provides additional benefits specific to the needs that arise if you become ill, injured, or pass away while traveling. To learn more, contact my office today.
