The life insurance application process can be relatively straightforward. Ordinarily, you have two options: either to take out a direct policy or get covered through a financial adviser. Both will ask you questions about your health, lifestyle and occupation which will determine how much you pay for a policy.
Life insurance application: direct vs advised options
Directly from the insurer
If you apply directly, the life insurance application process is typically done online by you, without an adviser. The questionnaire itself is usually straightforward and requires a few details about your personal circumstances – for instance, your medical history, employment and age. You'll also need to decide how much life insurance you need and agree to certain exclusions and premium loadings.
With an adviser
If you apply with an adviser, the life insurance application tends to be a lengthier and more thorough process, though the adviser will do most of the work. They can work out how much and what type of cover you'll need based on your personal circumstances, clarify anything you're unsure about and talk you through what you are and are not covered for.
What kind of information will I have to provide?
During the application process you'll usually be asked to disclose the following information:
Height and weight
Date of birth
Gender
Lifestyle habits (smoking habits, if you drink or take recreational drugs)
What are the typical stages involved in a life insurance application?
Submit a policy application
Start the application process by completing the paperwork with your chosen life insurance provider. You need to answer all the questions truthfully (as best you can) and you will need to sign a declaration that the information you have provided is accurate. By deliberately providing incorrect or misleading information, you risk voiding your insurance policy and leaving your family with nothing when they claim.
Medical assessment
Some insurance companies will require you to have an actual physical examination before you're approved; others will just need you to answer questions about your medical history on your application form. If you're having difficulty remembering something about your medical history, contact your doctor for medical records.
Your overall risk is assessed
The life insurance provider will work with an underwriting team to assess your eligibility based on your application. They'll consider your medical history, lifestyle activities, sports you engage in and occupation to work out out the premium you should pay. All of the information in your insurance application will be kept confidential.
Did you know?
Over 3.8 million Australians have told a fib in order to get a discount on their life insurance policy, according to recent research by Finder. The research found men (29%) are more likely than women (11%) to be less than truthful on a life insurance application.
What happens after I've been assessed?
Once your application and details have been assessed:
The life insurance company will notify you in writing of their findings. Usually the company will accept your application and send you a policy schedule with details of the cover and policy you have applied for, as well as the premiums, which have been finalised for you. Your provider will keep your details on file until the time you or your family make a claim.
If a life insurance provider cannot accept your application they will instead offer you amended terms of insurance so that you can still obtain some form of cover. For example, if you have a serious pre-existing medical condition, or you regularly take part in high-risk activities, then your insurer will do one of two things with your application:
Apply a loading: This means that you'll have to pay a little extra but you'll still be covered.
Place exclusions on your policy: For example, if you have a history of blood disease, you won’t be able to claim for any instances related to this condition, or if you regularly participate in high-risk sports such as sky diving, then you won’t be able to claim for any illnesses or injuries resulting from sky diving.
Lifestyle changes:
Quitting smoking (keep in mind that most insurance companies will ask you if you have smoked within the last 12 months)
Find a company that specialises in covering people in your situation. You may wish to speak to an insurance specialist to help you with this.
Pay annually, rather than in monthly instalments – this is often cheaper.
How much cover do I need?
There are a few different ways to determine how much cover you need to take out, including using our online calculator. Another common method is to take your annual salary and multiply it by 10 (so if you make $50,000 a year, take out cover for $500,000).
You might also want to consider the immediate expenses that will need to be covered after your death – such as your funeral, mortgage repayments that still need to be made, other loans or debts that you still need to pay off, school fees and education costs for your children and a retirement fund for your partner. If you total these costs together, you will have a rough idea of how much cover you need.
Why you can trust Finder's life insurance experts
We're free
You pay the same as buying directly from the life insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
We're experts
Our team of life insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 250+ guides to make it easier for you to compare.
We're independent
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of life insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2016, we've helped 270,000+ people find life insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
FAQs about life insurance applications
Depending on your insurance provider, a medical examination, blood test and/or urine sample may be required. Some companies allow you to apply online without a physical exam, but they will ask you about your lifestyle and medical history, and will most likely check your medical records and history in the event of a claim. Other life insurers may only require a medical examination if they are concerned that something about your lifestyle, family history or medical history may make you a high-risk customer.
In this case, the insurance company is required to notify you of any unusual test results and provide you with details of how this will affect your coverage and application. From that point the test results will be sent to your current doctor and you can then organise a consult to discuss the details of the findings.
Start by requesting information on why you have been denied – sometimes the underwriter simply needs more information on something in your application. If it is because of your health or lifestyle, don't give up; different insurance companies have different standards to adhere to when accepting and denying life insurance applications. Just because one refuses you, doesn't mean they all will.
Finally, get an updated check-up from your doctor. This may show the insurance company that the medical condition they are concerned about has stabilised or is being adequately treated, which may change their decision.
Yes, your life insurance premiums should be unaffected by the fact that you are pregnant. Some life insurance companies may not accept an application from you until after you have given birth, but many others will, so keep trying. Pregnancy can sometimes cause high cholesterol in women, but insurance companies will either waive any extra premium amounts caused by this (because there is a justified cause), or you can just have your blood taken again after you give birth.
The time it takes for your application to be approved can vary vastly. Some companies will claim to accept your application within minutes when you apply online (though in reality it may take around 24 hours for the policy to officially be in place); others can take several weeks to approve you, especially if you need to have a medical examination and blood test as part of the application process. If the insurance company requires medical records to be sent from your doctor, this can further delay the approval process.
If you already know which life insurance policy you need, purchasing directly without advice is often simpler (you can do it within minutes online or over the phone) and cheaper. However, sometimes the amount of cover you're offered is less than what you'd get if you went through an adviser, and there tend to be more exclusions placed on your policy. If you decide to purchase life insurance directly, make sure you read through the PDS thoroughly so that you are well informed about what you are and are not getting.
Compare life insurance brands and quotes
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Why compare life insurance with Finder?
You pay the same price as buying directly from the life insurer.
We're not owned by an insurer (unlike other comparison sites).
We've done 100+ hours of policy research to help you understand what you're comparing.
Speak to an insurance specialist to help you find the best policy for your needs
Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).
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