Life Insurance invasive questions

[LifeInsured]

Why would they need to know your annual income and net worth, (late in the application process)? (the type of policy/benefit & premium have been set)
What are the consequences of withholding information here, out of privacy concerns?

 

[AggieMike88]

Since this is non aviation, I have nary a clue. Shouldn't this be in Hangar Talk?

 

[Kenny Phillips]

Because it's a red flag if you make thirty grand and insure yourself or your wife for a million bucks.

 

[rsleeds]

What are the consequences of withholding information here, out of privacy concerns?

The only real consequence is they don't issue you a policy. They can choose to not do business with you for any reason they want and you are free to try to do business with another company.

 

[midwestpa24]

Because it's a red flag if you make thirty grand and insure yourself or your wife for a million bucks.

They are looking for any kind of red flags that would indicate you intend to speed up your demise for financial gain.

 

[Rushie]

Maybe they also have actuary tables tying financial information to your risk of dying.

 

[Stan Cooper]

Asking for information about salary and net worth is standard practice.

Questions Life Insurance Companies Ask | AIG

 

[frfly172]

You can never understand the insurance companies parameters,for issuing policies.

 

[James331]

Why would they need to know your annual income and net worth, (late in the application process)? (the type of policy/benefit & premium have been set)
What are the consequences of withholding information here, out of privacy concerns?

Well they are insuring your life, seems to make sense they want to know what it’s really worth

 

[hindsight2020]

Well they are insuring your life, seems to make sense they want to know what it’s really worth

wait, human life is not worth a flat rate? Well, there goes organized religions' pitch.

 

[Ravioli]

^^^ That's (what @James331 said) was just funny

 

[Zeldman]

A company I once worked for had life insurance on their employees. I thought it was funny when I was asked, "Do you do any high risk activities.??"

Me thinking to myself, "What are high risk activities.??? I race cars, drive a truck carrying hazardous materials, learning to fly.."

So I answer "no, nothing at all....."

It was all for naught. That company closed down a few months later and I lost all health insurances again.

 

[James331]

wait, human life is not worth a flat rate? Well, there goes organized religions' pitch.

 

[TCABM]

Why would they need to know your annual income and net worth, (late in the application process)? (the type of policy/benefit & premium have been set)
What are the consequences of withholding information here, out of privacy concerns?

Some misperceptions here. You’ve applied for a policy and probably been given a premium estimate.

If you’re looking for coverage greater than 10x of the greater of your income or net worth, it can (but not always) be reason for the insurer to deny or re-quote.

Many, if not most, insurers also disclose they’re going to run a credit check on you pretty early in the process. The results from this credit check can trigger this type of question as well. Not saying it’s your case, but you’d be amazed at what a recent big bankruptcy can do to your premiums, as that contributes to the actuarial tables.

 

[Kenny Phillips]

^^ That is correct; a PETA member would surely swat a skeeter, would they not?

 

[Rushie]

Since this is non aviation, I have nary a clue. Shouldn't this be in Hangar Talk?

Maybe he wanted to post anonymously.

 

[Clip4]

Why would they need to know your annual income and net worth, (late in the application process)? (the type of policy/benefit & premium have been set)
What are the consequences of withholding information here, out of privacy concerns?

You are good with submitting to a physical exam, an EKG, drawing your blood, and testing your urine, but you have a privacy concern over your income?

 

[Kenny Phillips]

One thing about income and net worth: your bank (and other financial institutions) share (actually, sell) much more information about your situation than you would guess. Shortly after I received a fairly large check from a business deal I received all kinds of investment information in the mail. And it happens every time there's a blip in my income (such as when the partnership distributes the profits.) So even if you don't tell them, they'll (insurance company) know a bunch. (For example, they can know how much you've paid for your house, as well as if you have a mortgage on it; that's public record in most places.)