I’m working with three different people on life applications right now. I learn a lot about a client or prospective client when we complete a life application. It’s truly a time where trust is built and earned. The questions on the application fall into various categories:
- Physical items such as height and weight
- Behavioral questions dealing with smoking history as well as drug & alcohol usage
- Activity questions regarding sky diving, scuba diving, mountain climbing, etc.
- Medical questions on procedures, current medications, and more
Everyone smiles when I ask about traffic tickets or accidents. Some have even asked what they have to do with life insurance. Almost every insurance company that processes a life application will run MVR (motor vehicle report) and CLUE reports. The MVR show violations such as tickets and the CLUE report shows accidents.
People with multiple tickets for speeding, DUI / DWI, reckless driving, etc. or multiple at fault accidents, pay more for life insurance than someone with a clean record. More tickets mean more risk. More risk means the person with driving activity pays more for the same insurance than someone with a clean record would pay.
Do you have a question or an experience to share with us? Post it in the comments section or on our Google+ and Facebook pages. I know we’ll all learn something!