Life & Health Insurance/life insurance

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Question
should life insurances know the clients medical history before insuring,or go on what the client put on application?

Answer
Alice,
As you might expect, the answer to your question is..."it depends".
There are life insurance companies that will issue coverage based solely on the applicant's representations on the application, but only on younger applicants and only for smaller amounts of coverage.  If an applicant is older or wants a large amount of insurance, the company won't be willing to take on the risk without getting some independent medical information.  Most often they will engage a medical examining company to visit the applicant at their home or where they work.  The examiner will nearly always take a urine specimen and sometimes even a blood sample. Hair follicles (for certain drug tests) are also used.  The examiner will also complete a comprehensive medical history questionnaire.
Be advised that any false representations made in applying for life insurance can carry harsh legal risks in addition to potentially voiding the contract.  
I hope this answers your question.  If not, please let me know.
Bill Hezzelwood
www.actuarialanalytics.com

Life & Health Insurance

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William Hezzelwood

Expertise

I can answer almost any question about life insurance, such as: 1) What kinds of life insurance are available? 2) I have an old policy that is in danger of lapsing...should I pay more money into it? 3) I think my insurance company is not treating me fairly...do I have grounds to sue them? 4) My agent has proposed that I buy insurance from company X...is that a good, reputable company?

Experience

I am recently retired from a 40-year career as an actuary for a major life insurance company. I worked in the life insurance division and had a wide variety of responsibilities, such as: product development, systems development and management, field compensation, and program management.

Organizations
Fellow of the Society of Actuaries (by examination) Member of the American Academy of Actuaries Member of the Forensic Expert Witness Association Member of the American Association of Economic and Financial Experts Member of the National Association of Forensic Economics Member of the Financial Planning Association of Orange County

Education/Credentials
I have a B.S. in Business Administration (major in Actuarial Science) from Drake University.

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