Why it’s important to be open and honest when completing an application for life insurance.
Over my years of working with clients whom I had the privilege of setting the foundation of protecting their income and assets by using life insurance, it was always a given that they were comfortable with me asking the tough questions albeit presenting it in such a manner that would lower the defense barriers. If a proposed insured is interested in obtaining coverage no matter how much the coverage, there is a high chance that there will be a script check.
Well what is script check? In the case for life insurance, it is where a carrier requests’ information about your Rx /medication history. It’s like getting a credit report pulled and in an instant they have a record of going back of up to ten years. So what does this have to do with being open and honest? Based on the company “Milliman Intelliscripts” there are five things that allow an insurance carrier to gain access in your report. 1. You apply for life insurance, 2. You sign a HIPPA authorization, 3. based on your authorization the insurance company asked the Rx company to gather the electronic records, 4. The Rx company Gathers the data and submits them to the Insurance company and finally 5. The insurance company makes a decision and often time can be made the same day as you apply.
There may be carriers who requests’ your file and may not take the risk on someone who has been prescribed certain medications. You have to also remember that insurance companies are all about risk. As a consumer you look for an opportunity of transferring risk so as to not have to come up with a huge sum of money in the event someone passes away.
The insurance company in exchange for a premium will take on that risk and at the same time set rules and restrictions and underwriting criteria. In the section where the medical questions are, the agent will asked those questions like “Within the last (how many # years), Have you been prescribed …by a medical professional…of taken any medication etc… and if the answer is YES! Then the next question that is asked is what for, how long, dosage and how often. Now these medications may be listed in the agent’s field underwriting guide or only the underwriter has the autonomy to decide whether to accept the risk or not.
Well what if you were honest and they still declined then it’s an opportunity to offer coverage other than as applied. If you answer NO and it shows up, either two things have happened; The proposed insured wasn’t truthful or decided to omit pertinent information which can in turn be declined as a whole. Be mindful of your answers they are being asked for a reason.
At Ron L. Reed and Associates, our mission is simple, “To be Clear, Concise and Conversational with our potential and current clients. Our values are People Respect, Opportunity, Passion, Excellence and Loyalty.” Give us a call or get an instant life insurance quote by filling out the form to the right.