What to expect when applying for life insurance

Thinking of applying for life insurance so you and your family have financial security? It’s the responsible thing to do, but can be a little daunting because of possible medical exams and personal questions! Life insurance applications are a lot less complicated than they used to be, and you can even apply online and be accepted in minutes, without having to take a medical exam! We take a look at the life insurance application process, so you know what to expect when applying for life cover.

Understanding the underwriting process for life insurance 

Your life insurance application will be underwritten, which means you will have to answer personal questions, give details of your health as well as any medical conditions, and specifics about your job.

Life insurance underwriting is when the insurance company assesses your risk to determine the right premium, type of cover, as well as sum assured, for you, and in line with what you have applied for. As the sums assured on life cover policies are large, usually at least more than R300 000, the insurance company needs to be sure that the monthly premiums you pay are competitive and accurately reflect the risk of you as an individual.

What is the underwriting process for life insurance?

According to the 1Life Insurance glossary, underwriting is the process during which the insurer determines the level of cover it is prepared to offer, taking into consideration age, gender, education, occupation, income, current life insurance cover, hazardous pursuits / hobbies, personal health status, family health history and insurable interest. Underwriters typically look at your health and in some cases your finances, especially if you are applying for a large sum assured, to determine how much cover they will offer and at what premium.

The outcome of the life insurance underwriting process is that the insurance company will:

• Accept the sum assured at the premium quoted for life cover, or
• Adjust either one or both the sum assured or premium, such as increasing the premium if the risk of premature death is higher than average, or
• Offer accidental death benefits only. Accidental death benefits will only pay valid claims if the cause of death is an accident, such as a motor vehicle accident, and not where death is due to natural causes such as a heart attack or stroke.

Underwriters can also exclude certain causes of death, such as heart attack, if the life assured has a history of heart disease. In very rare cases, they may decline cover completely.

Steps in the life insurance underwriting process 

There are a number of steps in the underwriting process before the insurance company decides on whether to accept, adjust or deny cover. These include:

• Submitting an application: this is where you complete an application form and apply for a sum assured, such as R1 million. This can often be done over the phone, which saves you from having to complete long forms.
• Answering medical and occupation questions: in your application you will be asked a number of questions about your health and occupation, such as whether or not you have any chronic conditions like high cholesterol and how much travelling your job entails. It is vitally important to answer these honestly, and in full.
• Medical evaluation: you may be required to go for medical tests such as a blood pressure and blood sugar test, as well as an HIV test. These are paid for by the insurer and can usually be completed at a local pharmacy.
• Risk assessment: underwriters will assess your risk using the information in your application and results of any medical tests
• Underwriting decision: your insurance company will advise of their decisions, which in most cases is to accept the cover you applied for at a standard premium.

What to expect during the application process 

When you are evaluating and selecting insurers, always ask how you can apply for life insurance, and how long the application and life insurance underwriting processes take.

Depending on the insurance company, you can apply online or use a financial adviser to take out a life insurance policy. You will be required to complete a life insurance application form in this process and submit it. However, if you apply over the phone you will need to answer all questions the consultant asks and these will be recorded.

Applying for life cover should take a few minutes, but be sure to check all your answers for accuracy, and in case you left anything out. Once the application is submitted to the insurance company, they will start life insurance underwriting and confirm which, if any, medical tests are required and where and when you can take these, giving a reference number to use when taking the tests.

The results of medical tests will be sent directly to the insurer, who will review your application and the results. Underwriting decisions are taken quickly, once all the requested information and test results have been received. However, if there are delays in taking tests there can be delays in the life insurance application process. When you apply for life insurance, ask the insurance company how long it takes to underwrite so you know when to expect a decision.

Tips for a smooth underwriting experience 

You can also ensure a smooth underwriting experience by:

• Completing forms accurately, or answering all questions asked accurately in a telephone application, giving correct names and ID number details as well as comprehensive health information
• Taking any medical tests as soon as possible
• Submitting any additional information requested
• Specifying the correct contact details so your insurer knows where to find you!

1Life Insurance for all your life insurance needs

1Life Insurance is a licensed insurer and financial services provider and has been changing policyholders lives for nearly two decades. 1Life Insurance life cover policies can be tailored to your needs and budget, with cover from R300 000 up to R10 million. Policies are easy to take out, manage and claim. You can request a quick quote online and save up to 13% on monthly premiums if you buy cover online. We have been voted an iconic brand 2 years in a row, in the 2022/2023 and 2023/2024 Ask Afrika Icon Brands Awards and have been recognised as South Africa’s #1direct life insurer in the annual Swiss Re Reports for 11 consecutive years! Our policyholders are always top of mind, and in 2023 and 2022, we had the highest net sentiment in the PWC SA Insurance Index Report.

Preparing for a successful application 

Navigating the underwriting process for life insurance doesn’t have to be daunting. By understanding the steps involved and preparing effectively, you can streamline your application and increase your chances of securing the coverage you need. Contact a skilled 1Life Insurance consultant for any questions or to apply for your policy today!

Frequently asked questions

Will I have to go for medical tests for my life insurance application?

This depends on the insurance company. Most will ask for tests such as blood pressure checks that can be done at a pharmacy, but it is rare to have to undergo a full medical examination with a doctor.

Can I still get cover if I have a chronic condition?

Yes, if the chronic condition is not too serious and well managed. However, serious chronic conditions may result in a higher premium, or the offer of accidental death benefits only.

When are life insurance applications declined?

Very rarely! Most life insurance applications are accepted at standard rates, the lowest premium. Life insurance applications are declined only if the life insured is seriously ill, however even in these cases accidental death benefits may be offered.

Do you keep my personal and health information private?

Yes! Licensed insurers comply with the Protection of Personal Information Act (POPIA) that requires them to use your information only for the purposes of life insurance and not share it with anyone. This information is destroyed when it is no longer needed, in line with the regulations.