What typical questions are normally asked when taking out critical illness insurance?

Anyone taking out life insurance will probably have a number of questions which need to be answered before they would take out a critical illness insurance plan however some questions will depend on the type of critical illness insurance they take out. An example of the questions that could be asked are:

• Does my address influence the cost of my insurance,
• Does my age, gender, height, weight or if I am a smoker also affect the cost of my insurance.
Others questions may be:
• Does my occupation affect my insurance or the premium
• If I do any hazardous activities will this affect the insurance or the price?

All questions can be answered by anyone who is authorised to sell critical illness insurance or life insurance. Having such questions answered means that it may give the client piece of mind knowing what is likely to happen to their application. In all circumstances the client should feel comfortable and happy with the plan they take out and if they ask one question or a hundred questions they are all important and should be answered as truthfully and honestly as possible.

An application goes through a number of stages before the policy has terms offered and therefore ready for the client to start as soon as they wish. If the client however does not wish for the critical illness insurance to start straight away then the application can go on hold. However the price of the plan would only be valid for a period of time and therefore this may be a consideration. An insurance broker for example would be able to get a possible idea of the likely terms of the application and therefore you would know if any factors are likely to influence their decision.

Other questions such as does my address affect the cost is another question which may be asked and is very simple. An insurance plan is not underwritten based on your geographical location; it would not make any difference whether you live in the north or south of England. However factors such age, gender and whether you are a smoker or non smoker will affect the price but not the underwriting decision. Your height and weight may influence their decision and depending on the BMI ratio of the individual the insurance provide may increase the premium by a certain percentage depending on the clients BMI but they could also decline the application in certain circumstances.

Also when considering critical illness cover most occupations do not influence the insurance however if taking out income protection the insurance provider may take a more cautious view on some occupations. With critical illness protection there are a number of occupations which affect the price of the plan for example those who are in the armed forces may pay a higher premium but some may not be able to secure such insurance, but also those who work in a potentially hazardous environment. However each insurance provider is different from one to another so the insurance broker dealing on behalf of the client should do research to find the provider who may offer best terms. If there is a possibility of different ratings from the different companies it may be worth considering applying to two different companies simultaneously to see who may off the best terms.

With regards to any hazardous activities they may offer the plan at standard terms depending on the activity in question but if it is deemed dangerous then they may add on an additional premium which may depend on how often you do such an activity or for example if it was diving it may depend on the depth of which the client dives to on a regular basis or if they were to dive alone and where.