Concerns about data privacy are no joke—a staggering 95% of Americans are worried about businesses selling personal information. And when it comes to applying for life insurance, you’re asked to share some really personal information.
To ease concerns over data privacy, it’s helpful for you to know that the information collected is generally used to prevent fraud, speed up decisions, and ensure that the policy fits your needs. Here are a few pieces of information that life insurance companies commonly ask for.
Life insurance companies ask for your social security number (SSN) to verify the right person is applying for the policy. In other words, it confirms that you are who you say you are. This helps prevent fraud and blocks someone from taking out a life insurance policy on your behalf. Your SSN is also used to check your medical records to understand how you handled any previous health conditions and drug prescriptions.
Your driver’s license number is used to pull your Motor Vehicle Report (MVR), which is a window into your driving history. Your MVR shows any citations, accidents, license suspensions, and DUI’s you’ve received, which helps carriers need to determine your risk classification. Risky driving puts your life at an increased risk and influences how much a life insurance carrier will charge to cover you. Since most states require your SSN before issuing a driver’s license, your driver’s license number is another data point that confirms your identity.
Carriers ask for financial information like your salary and bankruptcy history to ensure that the amount of coverage you’re applying for is appropriate for your needs (and that you’re able to pay your monthly premiums). Being overinsured or underinsured could mean you’re paying too much for a policy you don’t need or that your loved ones wouldn’t be covered entirely.
Your health and lifestyle have the most substantial impact on the policy that life insurance companies can offer. You’re asked to answer detailed questions about your health, family medical history, medications, and any medical conditions or diagnoses. If carriers don’t feel like they have a good understanding of your health, they will set up a medical exam for you. They may also request more information from your doctor. Lifestyle choices affect health too, which is why you’re asked about your occupation and any dangerous hobbies, as well as tobacco, drug, and alcohol use.
You should feel confident that the information you share with life insurance companies is protected. Earning your trust is our first priority so you can always feel secure choosing Ethos. If you’re ready to get started applying for life insurance, you can get your free, personalized quote with Ethos below.