5 Life Insurance Questions: How to Prepare

Life insurance is one of those things most of us know we need, but few of us feel truly ready to talk about. If you’re getting ready to apply, knowing what types of life insurance questions to expect can make the whole process feel a lot less overwhelming. Think of it less like an interrogation and more like a conversation — one that helps your provider find the right coverage to protect you.

Why insurers ask life insurance application questions

Depending on the type of coverage you need, insurers will ask specific questions as part of a life insurance application. This process is known as underwriting and it’s how insurers assess risk. The answers provided help determine not only how much coverage you’re eligible for, but also, what premium you’ll pay.

As life insurance products vary in complexity, length of time, and coverage amounts, asking a series of questions to assess risk is standard practice across all Canadian insurers. More simple products, like guaranteed acceptance life insurance, require few questions, while some permanent life insurance products require more personal information. This helps keep life insurance premiums fair and affordable.  

While some questions about your health, lifestyle or family medical history may feel intrusive, answering honestly is best, otherwise your application could be denied or your life insurance payout may be disqualified. Any misrepresentation, whether intentional or accidental, could count as insurance fraud.

Remember, your personal information will be protected. Canadian privacy laws have strict rules, and your insurer may only use or disclose personal information for the identified purposes for which it was collected.

Here is a breakdown of the types of questions you may be asked about when applying for life insurance.

1. Health questions: What insurers may ask about your medical history

Your health and medical history are the foundation of your premium cost. Because your overall health plays a role in determining your eligibility, coverage amount, and rate, you’ll likely be asked about your current and past health status, including:

You may also be asked about the medical history of immediate family members, such as a history of heart disease, cancer or early-onset diabetes, as it can indicate a predisposition to certain conditions.

Many Canadians assume pre-existing health conditions (any medical condition that was present before you applied for life insurance) automatically disqualify them from coverage but that’s not necessarily the case.

2. Medical testing: What exams may be requested by insurers

In addition to a health and medical questionnaire, your insurer may ask for a medical exam and lab testing as part of the underwriting process.

While this can feel nerve-wracking for some, the point of testing is to get an accurate snapshot of your health so that an insurer can assess any risk and provide an accurate cost for life insurance.

Some of the measurements and tests that you can expect include:

If you don’t require more extensive medical testing, a paramedical nurse will typically come to your home to collect the measurements and samples.

If you’re concerned about how any pre-existing conditions may impact your eligibility, there are no-medical life insurance options, such as guaranteed life insurance. This type of insurance doesn’t require any health questions or medical testing, but the coverage available is much lower than traditional insurance.

In addition to medical testing, some insurance companies could verify your medical records with your doctor to ensure the information provided is complete and correct.

3. Occupation questions: What insurers may ask about your job

Your occupation is another part of your risk profile. Some occupations, like desk jobs, carry little additional risk. But higher-risk jobs — think firefighters, police officers, and miners — may result in higher premiums.

Your insurer may also consider your work arrangements: whether your work from home, commute a far distance, or work in a hazardous environment, like on a roof or with dangerous materials.

Travelling for work may also affect your risk, but insurers typically consider frequency and destination. For example, travelling once a year within North America carries less risk than travelling each month internationally.

If you work in a specialized field and have questions, a licensed insurance advisor will be able to answer them and help you explore your choices.

4. Lifestyle questions: What insurers may ask about your hobbies

Beyond your health and occupation, what you do in your spare time could surprisingly impact your life insurance rate. This includes your hobbies, recreational activities, driving record, and any alcohol and tobacco use.

Some recreational hobbies come with additional risk which could lead to an increased premium, including:

Your insurer also considers frequency. If you tried skydiving once or went scuba diving on your honeymoon, that likely won’t affect your premiums, but if you do it regularly, it’s considered a hobby and may impact your rates.

Driving record

Your driving history for the past five to 10 years might also be reviewed, even though it might seem unrelated to life insurance. This depends on the insurer and type of coverage you apply for. This is not a complete list, but if any of these violations show up on your driving record, your insurer might assess you as a higher risk which could impact your premiums:

Your insurer could also evaluate how many demerit points you have lost and the number of accidents on your record.

Alcohol and tobacco use

Smoking and alcohol use have a significant impact on your insurance premiums because of the correlation between tobacco use, alcohol and disease. 

Smoking status has a significant impact on your life insurance. Up to half of smokers will die from smoking-related illnesses, according to the Canadian Cancer Society (CCS).

Smokers, or Canadians who consume nicotine, including vaping, can pay almost double the premiums of non-smokers. Typically, a life insurance company considers you a smoker if you’ve smoked or used any form of tobacco within the last 12 months.

This includes:

Learn more: Life Insurance for Smokers

Since cannabis was legalized in Canada in 2018, life insurers have worked to determine how to best underwrite policies for cannabis users. If you smoke or vape cannabis, you are more likely considered a smoker. However, if you consume edibles or oils, for example, you are less likely to be considered a smoker.

The Government of Canada’s low-risk alcohol drinking guidelines suggest a limit of two drinks per day for women, and three drinks per day for men. Drinking alcohol raises your risk of developing various cancers, including mouth, neck, esophageal, breast, colorectal, liver, stomach and pancreatic cancers, according to the CCS.

As higher alcohol consumption can lead to more health risks, your insurer could ask the number and type (beer, wine, spirits) of drinks you consume each week. You might also be asked if you’ve ever been treated for alcohol dependence or if you have any driving while intoxicated violations on your driving record.

Like all other life insurance questions, it’s important you answer honestly. Alcohol and nicotine consumption can be detected by medical testing. Your insurer may also verify your answers via the MIB (The Medical Information Bureau), which maintains a coded database of previous life insurance applications and is used to prevent fraud by flagging inconsistent information.

5. Financial questions: What insurers may ask about your income

Some applications, especially for higher coverage amounts, may require you to disclose information about your income and financial situation, including your debts and assets. This helps your insurer determine the appropriate coverage amount relative to your insurable interest.

You may also be asked about any existing life insurance policies. While Canadians can hold multiple policies, your advisor can help you avoid over-insurance, where you pay for more coverage than your needs and financial circumstances justify. Ultimately, these questions ensure you get the right fit for your family’s needs.

Read more: Can You Have More Than One Life Insurance Policy?

How to prepare for life insurance questions

Answering these personal questions can feel daunting, but keep these simple guidelines in mind will help you approach the process with confidence.

Ultimately, providing accurate information when applying for life insurance helps ensure your policy is valid and tailored to you and your family’s financial security.