How You Are Assessed When Applying for Life Insurance

If the thought of tackling a lengthy application process is putting you off applying for life insurance, we understand your struggle. It can be overwhelming if it’s your first time purchasing a life insurance policy. But there’s no need to stress; we’re here to help!

We want to explain the application and assessment process in simple terms. By giving you a better understanding of the processes in place, why they are there and what they achieve, we hope you will feel more confident about approaching us at Cover Australia for a life insurance quote.


How do I Receive Life Insurance Advice?

It is always important to start your life insurance journey by seeking advice from an experienced adviser. Then once you’ve chosen a life insurance product, your adviser will guide you through the application process.

Life insurance advisers are experts in the industry and know all the ins and outs of getting you the best deal and the most comprehensive cover for your specific needs. An adviser can talk you through the application process, informing you about the steps you need to take, the information to be provided, and the process involved to get you covered.

Don’t feel like you are going at it alone. By having a knowledgeable adviser by your side throughout the process, you’ll always have someone to turn to if you have any questions about the application process and the cover itself.


How do I Lodge an Application?

The first step you need to take to obtain life insurance cover is to submit an application with a life insurance provider. Once the application is submitted, assessments will then take place.

Depending on the details you will be asked to provide, there are three different ways an application can be lodged:

Your adviser can submit your application answers directly on your behalf

You can answer application questions over the phone

You can fill in a physical application that your adviser will submit on your behalf


What Information do I Need to Provide in an Application?

To ensure the insurance provider can accurately assess your eligibility for life insurance, a number of documents are often required. Depending on the insurance provider and level of cover you choose, the information you may need to deliver includes:

  • Age
  • Gender
  • Residency
  • Occupation
  • Medical history
  • Sports and rectional pastimes
  • Financial status

It’s always important to be honest about your personal details and medical history so you can receive an accurate assessment and an outcome that correctly reflects your needs and situation.

According to Bankrate, a two-year contestable period is included with most standard life insurance policies meaning that the policy can be withdrawn by the insurance company if it’s found that you lied on your application.


How am I Assessed for Life Insurance?

An underwriter is responsible for evaluating life insurance applicants, and it is their job to determine the level of risk associated with the person applying for the cover. To do this, your personal details and medical history are evaluated and carefully considered to decide on the conditions and pricing that will be applied.

Underwriting is necessary for most life insurance policies, however, it’s not required for default life insurance options provided by workplace schemes and superannuation. According to TAL, their life insurance underwriters along with all others aim to arrive at a conclusion that is fair to the individual as well as the pool of funds needed to cover the risks.

It’s crucial for an underwriter to assess your situation correctly and give you a good deal on your premiums while also not causing any monetary loss to the insurance company. After all, if the premiums are too high, the customer could easily get insurance from a competitor offering a better deal.


What Can I Expect from the Assessment Process?

The whole point of your life insurance assessment is to determine how long you’re likely to live according to current medical history and at what point in time a claim is likely to be made. The insurance company wants to ensure they can get enough back from you in premiums before paying out a claim on your policy.

Here’s a quick overview of how each area is likely to be assessed:

  • Age: One of the major factors contributing to your premium is your age. Younger people are valued as lower risk, therefore, their premium will be lower than older people.
  • Health:If you’re currently in good health, you will be seen as a lower risk. If you have an unhealthy lifestyle or experience regular illness, it’s to be expected that you will receive a higher premium.
  • Family History: If you have a family history of serious diseases or illnesses, it’s possible that you will be placed in a higher risk category when being assessed.
  • - Work and Recreation: If you work in a hazardous career where there is a risk to your health and wellbeing, your occupation will have an impact on your premium. This is also the case if you regularly take part in recreational activities where there is a possible risk to your life, such as extreme sports.

Medical Assessments

When applying for life insurance, depending on the amount of cover you are requesting, medical examinations are often required to provide an accurate assessment and gain a precise depiction of your health status.

According to, an underwriter may request a medical report from your doctor or conduct a medical examination if you have been inflicted with a medical condition such as:

  • Chest pains
  • Lung disorders
  • Chronic indigestion
  • Hepatitis
  • Mental illness
  • Epilepsy
  • Kidney, liver or bladder disorders
  • High blood pressure and heart troubles
  • Diabetes
  • Bronchitis
  • Cancer or malignant tumours

It is possible that a previously unknown medical problem could be identified after your medical assessment. If this occurs, the insurance company will notify you if any unusual test results occur along with information about how it will affect your life insurance application.

According to Asteron Life, depending on your age or life circumstances, you may be able to avoid medical tests altogether. If you’re under the age of 45, have no current health problems and are hoping to apply for up to $2.5 million of life insurance cover, for example, you are unlikely to need a medical assessment.


Why are Life Insurance Assessments so Involved?

The life insurance sector is heavily regulated in Australia. As explained by TAL, after your cover has been accepted and the insurance policy has been issued, an insurer is unable to cancel the policy or increase the price in relation to the policyholder’s health deteriorating.

The insurer can only fully assess this risk once, which is why the assessment process is so involved at the beginning. So with this in mind, it’s always best (and more affordable) to take on life insurance while you’re young and healthy to ensure you receive the best premiums and coverage possible.


What are the Outcomes?

Once your assessment is complete, you will be informed of the outcome in writing. If your application has been accepted, you’ll also receive a policy schedule from the insurer outlining the cover included and the dollar amount for the first premium due.

The outcome will vary depending on the results of your assessment. The possible outcomes from your assessment are as follows:


Higher Premiums

When the premium is high on your insurance, it’s because an underwriter applies loading due to a negative risk assessment. Although you’ll be paying more, you will still receive full coverage.


Excluded conditions

Conditions may be excluded from your policy. The exclusions are often related to a particular medical condition you have, or if you regularly take part in high-risk sports or activities.


Denied Cover

If the underwriters consider you to be too high-risk to insure due to your medical condition or other lifestyle factors, you will be denied cover.


Application Approved

If no major issues are identified from your assessment, you will receive comprehensive cover with standard rates, and all your policy information and paperwork will be sent to you directly in the mail.


Tips for a Successful Life Insurance Application from our Premium Partners

Keep in mind that the application process and the information required can vary slightly between insurance providers. To help you on your journey towards protecting your loved ones with life insurance, our premium partners at Cover Australia have shared their ultimate life insurance application tips.

These tips come direct from our insurance providers and will be invaluable for you when seeking out a policy that suits your needs at a price you’ll be pleased with.


Life Insurance Application and Assessment from Cover Australia

At Cover Australia, not only can you compare insurance policies with us, but you can also receive trusted advice from qualified advisers who are more than happy to guide you through the life insurance application process.

Cover Australia’s platinum partners are industry leaders when it comes to providing comprehensive cover and fair assessments at a price our customers love. If you’d like to get a quote for life insurance with us at Cover Australia, visit our website and speak with an adviser to initiate the application and assessment process right away.

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