Should I try a different life insurance company
January 23, 2023 2:06 PM   Subscribe

I'm in California getting applying for term life insurance. The company is asking a lot of questions, much more than they did for my wife who also applied for life insurance. Is that normal? Is it because my policy is for a larger amount ($3 million vs $1 million)? I'm worried I triggered their system by increasing the amount in the middle of the process.

I'm in California getting applying for term life insurance through Policygenius. Initially the process was straightforward, and I got an offer for Life Insurance at a $500k coverage. But I decided to increase the amount to $3 million and I'm worried that was a red flag for the insurance company.

They had already given me a medical, but they asked to redo the medical. And started contacting all my medical providers from the past.

There is nothing worrying about me healthwise. But I know if you're rejected for life insurance that's a red flag and I'm worried I somehow triggered something within the company.

Am I better off just stopping the application with this company and trying again elsewhere.

Relatedly, they contacted my therapist for a letter. I was seeing him to help decide whether to get married and he has me diagnosed with Adjustment Disorder. Is there anything he should stress in the letter?
posted by earlsofsandwich to Work & Money (4 answers total)
 
> Is it because my policy is for a larger amount ($3 million vs $1 million)

I mean we're not going to know this, but I'd guess that is exactly it.

I know when I moved from 1x my salary to 5x my salary through my company benefits (backed by Unum) I had to do a lot more paperwork, but it was just a form my primary care doctor did and they didn't contact everything in my life. It wasn't very invasive. But the amount was not what you are talking about either.

So I would imagine the amount is exactly why they are doing more due dilligence. If you want the life insurance and the price is acceptable, probably just put up with it. At least for me, once I did it once, it didn't make me redo it and I've had it for 15 years now.
posted by cmm at 3:04 PM on January 23 [3 favorites]


I've been trying to get a new policy since September, when my previous 20-year term policy expired. The detail they want on my medical history is infuriating. No Mr life Insurance, I don't remember why I took 2 Tylenol on Dec 28, 1986.
posted by COD at 4:07 PM on January 23 [1 favorite]


From the life insurer's point of view, selling six $500K life insurance policies or three $1 million policies is less risky than selling one $3 million policy. They are going to underwrite the larger policy more carefully. So yes, you probably hit a face amount tier that requires more information.
posted by TORunner at 7:00 AM on January 24 [1 favorite]


"Adjustment Disorder" is therapy-speak for "this isn't an actual illness, patient just needs to talk to someone and we need a billing code so insurance pays for it." I wouldn't worry about that at all.
posted by restless_nomad at 12:39 PM on January 24


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