U.S. Life Insurance Applications See Slippage

The month of June (2010) was not good for U.S. life insurance applications, as activity for individuals age 60 and up dwindled, with results indicating the first month with growth of below 10 percent in the age group since March of 2009.

According to the monthly MIB Life Index, overall, individually underwritten life insurance for all ages fell nearly 4 percent in June, compared to the same month a year ago. It also marked the biggest year-over-year slippage since March 2009.

The report notes that June's activity had dropped 1.4 percent from May, a fall that the report's author's claim is "atypical' for this time of year.

For the first half of 2010, the U.S. Life Index witnessed alternating monthly increases and losses, resulting in application activity being off fractionally for June's close, a decline of 0.2 percent for the year.

According to the Index, ages 0-44 were down 7.2 percent, ages 45-59 dropped 3.1 percent and those in the 60 and up category rose 8.1 percent compared to June of a year ago.

Following growth in ten of the last 12 months, ages 45-59 had its greatest year-over-year percentage drop since May 2009.

If you have been thinking about acquiring a life insurance policy, the obvious next step is to fill out an application that contains questions regarding both your past and current health history and lifestyle.

In most cases, you will be required to undergo a medical exam, set up and paid for by the insurer.

It is important for individuals interested in life insurance to be honest in the answers they give on the application. Individuals should remember that misrepresenting them or concealing information on the application can lead to the policy being canceled.

Those answers, along with results from the medical exam and one's past health history, will assist the insurer in deciding whether or not to offer an individual a policy. The insurer can also use the information to determine a rate for the coverage.

In the event your application is turned down, do not despair.

There are numerous life insurance companies and options for consumers. Should a consumer be turned down on one application they can typically get coverage somewhere else.