What is analyzed in the proposal of life insurance?

Age, profession, lifestyle, medical history, and weight can all influence the outcome of your analysis. Understand how the application works.

Adult life has its ups and downs, pleasures and displeasures… For example, waking up early all week to go to work is hard; but being able to pay for your much-desired vacation trip is worth all the hard work.

Providing life insurance coverage isn’t all that fun either. But at the end of the day, knowing that the one you love is protected is an unparalleled relief. 

Therefore, we decided to give you a small spoiler of the points that are analyzed in a life insurance application to make the process even easier and faster for you.

How in-app analysis works

Before hiring, a brief analysis of your lifestyle and personal health condition is carried out during the application process. It is important for you to know that the older the insurance company you hire, the more laborious and time-consuming this moment is.

So, do your research carefully and make sure you choose innovative and modern companies, such as insurtechs — start-ups that combine insurance with technology. By giving preference to more modern companies, you guarantee a simpler, faster process without excessive or unnecessary documentation.

Crucial data for your life insurance application

  • Age — Let’s clarify once and for all: the younger you buy life insurance, the cheaper it will be. Let’s say that age brings the famous “joint pain” and with it the highest insurance monthly fee as well.
  • Occupation — Statistically speaking, financial stability tends to reduce mortality risk. In addition, some professions pose greater risks than others.
  • Lifestyle — Your daily activities can indicate how life-threatening you are on a daily basis. Do you travel by plane a lot? Do you practice any extreme sport or do you have a high-risk profession? These answers influence your insurance.
  • Tobacco use — Before applying it is important to know that if you have used any type of tobacco in the last 2 years, this should affect your proposal.
  • Medical history — Reporting your current health status and family medical history during the Personal Health Statement (DPS) helps to have a more accurate estimate of your life expectancy and risk. 
  • Biological sex — It is also an important factor in the calculation, as the life expectancy of women is higher than that of men.
  • Weight loss or gain — Weight loss or gain (at least 10 pounds) is a sensitive factor in the analysis, as it may indicate characteristics of your lifestyle or medical condition. Ah, but if you’ve gained a few pounds because of your pregnancy, don’t worry, we understand the situation.

Other important information when making your proposal

You probably already know most of the answers asked during the process, but here are other points to keep in mind when protecting your family’s dreams:

How much coverage do you need and want to have

We suggest coverage between 5 and 10 times your annual income. Your coverage must be of sufficient value to not alter your family’s lifestyle and ensure that mortgages, loans, and other pending items are paid if something happens to you.

How long do you want coverage?

If you don’t have one but plan to have a child soon, we suggest coverage from 15 to 25 years old. But, if your children are already a little grown up, 10 years is ideal. Coverage should last as long as necessary for the people who depend on you to achieve their own financial independence.

Who do you want to nominate as your beneficiary?

It is ideal that you nominate people who depend on and rely on your income and support, such as children, spouse, family, friends, or partners. It is even possible to nominate a legal entity as a beneficiary of life insurance.

Your beneficiary’s personal data

Identification documents and CPF are essential, but check the General Conditions of the company for which the documentation is requested.

Your driver’s license details

Your driver’s license number is important for verifying your driver’s history. In the event of an accident, while the contractor was driving a vehicle without a license, there is a risk that the insurer will not pay compensation. 

Medical history (DPS)

The DPS (Personal Health Declaration) is a document designed to speed up and facilitate the hiring process. In it, the insured reports his own personal and family medical history. It is crucial not to hide any information, as the proposal may be denied by the broker in the face of such a situation.

DPS, however, is not used by more traditional and less up-to-date companies. In this case, it is necessary to present past diagnoses, in addition to performing a series of new consultations and exams to request a current medical report. Much more work.

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