Purchasing a life insurance plan is considered a valuable approach, as it provides financial security to your family during your unexpected demise. However, before you purchase a term policy, you should be prepared to answer a few questions your insurance provider asks while filling out the life insurance application form.

It will help your insurer find the necessary features, the exact sum assured required and the affordable premium rate based on your financial needs. While it is necessary to answer these questions, it is even more important to be true to your knowledge to ascertain the benefits as required. So, here is a detail about the questions, why it is important and how to answer them.

5 Common Questions Asked While Filing Life Insurance Form

Here is the list of the five common questions while filing the life insurance form:

• Questions on basic details - The first time you go to an insurer to purchase term insurance, you have to get introduced to them by answering a few questions on your basic details. You will have to provide basic information such as Name, Age, Address, Contact details, etc.
  
  

  It will help them open an account and manage your details in their database to build a long-lasting relationship. Provide the correct details in the term insurance application form based on your identity proofs available to avoid any future discrepancies.
  
  

• Questions on personal and family medical history - The primary purpose of purchasing a term insurance plan is to protect your family in your absence. Your insurance provider will cover the associated death risk during the policy term. To cover the death risk, they must know about your personal and family medical history.
  
  

  You will have to explain any surgeries you have undergone, medications taken so far, and other serious treatments for any diseases. It will help them understand the death risk. For example, if you have pre-existing illnesses, hereditary health issues, etc., the risk of meeting a fatal incident can be close. It will help them analyse the scenario and fix the sum assured and the related premium rate.
  
  

  Also, if your immediate family member dies due to a critical illness such as cancer, you are susceptible to getting affected too. Again, when you provide such details, it will help your insurer evaluate the condition to decide the financial terms. It would be nice to buy a life term plan based on these analyses to benefit maximally.
  
  

• Questions about occupation - Your occupation is another factor that can help them understand possible health issues that are bound to occur. For example, suppose your work environment involves dangerous activities such as working in a mine, chemical industry, etc. In that case, your term cover insurance will have to be decided based on possible tragedies that can happen anytime. On the other hand, if you have a sedentary work environment such as desk work, the possible health issues might be less in the short term and can develop over the long term, and the premium will be fixed accordingly. If you are working in any other industry, you will have to explain the environment and the related hazards to understand the risks involved.
  
  

• Questions on lifestyle - Your lifestyle is a very important factor that helps determine your health condition. The two most important habits questioned while filling out the application form are smoking and drinking. Smoking can affect your health drastically and become the primary cause of diseases such as lung cancer. Many times, it may not show any symptoms in the long term.
  
  

  Drinking is equally harmful and can cause damage to many organs in the body. So, if you are addicted to smoking or drinking habits, your insurance provider will mark you under the high-risk category and charge the premium accordingly for the term policy.
  
  

• Questions on hobbies - It might sound odd to ask about your hobbies while filling out the life insurance form. However, hobbies can reveal the nature and extent of risk your insurance provider must accommodate in the long term. For instance, if you are an adventure lover, you might keep travelling to different destinations in your vehicle, experiencing different terrains. While it can be exciting, it contains a lot of risks that need to be borne by your insurer.
  
  
  

Why is it Important to Answer These Questions Sincerely?

The questions are simple and easy to understand. And answering these questions sincerely can help you benefit for two reasons:

• Your family will be able to claim the death benefit without any difficulties. Suppose you have provided wrong information relating to pre-existing illnesses to help your family secure in your absence. In that case, it might lead to claim rejection considering it as an event of fraud.
  
  

• Helps the insurer determine the right extent of the sum assured required to fix the policy term and the premium rate.
  
  

At Tata AIA, we have a well-established online system to help you answer these questions while filling out the application form. We also have a kind and supportive customer service executive team to help you understand the Tata AIA Life insurance plans and answer your queries in case of any clarifications.

Conclusion

Filling out the life insurance application form is crucial to ascertain the financial benefits required. It has to be done right to ensure that your family successfully surpasses the claim procedures to get the death benefit. Also, it helps your insurance provider determine the sum assured, premium rate and the policy term for your benefit. Therefore, promptly provide your basic details, personal and family medical history, and elaborate on your occupation, hobbies, and lifestyle to ascertain the financial benefits.

When you have successfully filled out the application form and purchased the term policy, you must stay invested through the policy term to benefit maximally.

L&C/Advt/2022/Jul/1642