What Typical Questions Does Life Insurance Companies Ask in Canada

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There are several things that you need to keep in mind when buying life insurance. One thing for sure is that you are going to be required to fill out an application. From this point on this is where things can get confusing.

All Insurance Companies Are Not The Same

Many individuals are under the impression that when they go to buy life insurance, it’s all the same. Meaning that every insurance company is going to offer the same coverage. Also, will they will ask the same questions. This is not the case, and it can vary greatly from one insurance company to another.

All Insurance Coverage Is Not The Same

Another important aspect about life insurance is that there are many different plans. Sometimes life insurance shoppers get overwhelmed. When they go to buy this type of insurance. It is because there are so many different life insurance products.

Applying For Life Insurance

Insurance companies differ. There are different life insurance products. It means the application for each of these is going to be different.

Questions For Life Insurance

Every insurance company will develop their questionnaire. They all have their criteria set for each type of life insurance they offer. The questions that will need answering are going to depend on the type of insurance. Some questionnaires will be far more extensive than others. Some questionnaires put more emphasis on one area of their questionnaire. Compared to others.

Common Questions Found In Life Insurance Applications

Personal Information Section

The insurance company is going to want to know all the details of the individuals they are insuring. They’re going to want to know their;

  • Proper name
  • Address
  • Their social insurance number.
  • They will also want to know what their citizenship is.

Sometimes applications get used for the different types of insurance. In the personal section, applicants need to identify which policy coverage they want.

In many cases, there are identification requirements. This gets attached to the application. Or shown to the insurance agent that is looking after the application. The type of identification can vary and can include;

  • A driver’s license
  • Birth certificate
  • Passport
  • Citizenship card

Third parties

Some individuals are taking out life insurance on behalf of a third-party. The insurance company wants to know about this. Who is going to be paying the premiums? If it is the third party that is paying the premiums they are going to want the personal information on them as well.

Other Insurance Coverage

Insurance companies want to know if the applicant already has insurance in place. If so, they want to know a good amount of details about this.

Banking Information

Every insurance company wants to make sure that they are going to get paid the proper amount and on time. Most will encourage automatic withdrawal payments from the bank. There will be a section to fill out information about this. Also, instructions to attach a void check.

Personal Information To Reduce Risks

Insurance companies are all about making sure that they reduce their risk. As much as possible. This is the reason for the questionnaire. There are many different components that can raise the risk for insurance providers. On the questionnaires, they’re, going to make sure that they cover as many of these risks as possible.

They’re going to want to know if the applicant has ever applied for insurance before. Along with the details about this.

Applicants may have to answer questions about whether they’ve ever received a pension. Particularly those types of pensions that replace income.

What type of activities the individual participates in is going to be important? Anything that may create a risk for the insured health and safety is going to affect the insurance company. Some examples of this are skydiving or scuba diving.

They want to know if an individual participates as a pilot or a crew member. They will also want to know if the applicant has done any travelling in the last few years.

The individual’s driving record is going to be something of importance. Insurance company will want to know if they have had any driving violations. Again, this is because it this type of action can create a risk for the insurance company.

They’re going to want to know specific details. About any criminal convictions. Specifically, those that may cause the insured to end up in jail.

Financial Information

Many life insurance applications have a section about financial information. This can be quite detailed on some types of applications. Depending on the type of insurance that is being bought.

Medical History

The medical history gives the insurance company a lot of information. About what type of risks the insurance company may be at. They’re going to want to know who their health care provider is. Also, any diagnosis, treatments, or medication that the applicant takes or has taken. During a specific period.

There are also going to want to know family health history. There will be a specific number of potential health conditions that they will be particularly interested in.

Health-Related Questions

doctor

The majority of the life insurance application is about health-related questions.

Usually, the number one first question will be on tobacco usage. There will be many questions concerning the type of tobacco used as well as the length of time it was used.

There will be a long list of a collection of health-related questions. They are often divided off into categories of different types of illnesses. For example, they may ask a series of questions concerning a blood-related disease.

They’re going to want to know about any type of medication the individual is on or has been on for a certain period.

Natural Health Care

Insurance companies know that a lot of people are turning to natural medicine. To enhance their health. They will ask questions about their natural health care. To make sure that they are getting all the details about the applicant. For example, they want to know about natural health supplicants. Or medications they take that are natural.

Beneficiaries

Life insurance means that some party is going to receive the amount of the value of the policy. Upon the death of the insured. These are the beneficiaries. The application will ask for details about the beneficiaries named. They will want to know the full name and the relationship the beneficiary has with the insured.

This is just a general outline of the type of questions that one may be faced with. When filling out their life insurance application.

Resources

http://www.rbcinsurance.com/files/00105/file-105821.pdf
https://www.lifeinsurancecanada.com/how-to-take-a-life-insurance-medical-exam/
https://www.sunlife.ca/slfas/Resources/New+business+and+underwriting/New+business+and+underwriting+guide/Tele-interviewing/Tele-interviews+-+FAQ

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