Policygenius requires a ton of financial information as part of the application process for life insurance.
They want to know my annual earned income, unearned annual income, total household savings AND total household debt…
Why is any of this information relevant for applying to life insurance. Health information I understand, it seems like they just want my financial information to either sell me more insurance, increase the premiums because they can see how much I can afford or sell the data directly to data brokers. Any idea why this information is actually necessary as part of the application process for a quote they’ve already provided? I’d understand more if they were trying to give me quotes that were relevant to my situation but this is after I’ve already received the quotes and I’m actually applying.
It’s relevant because every life insurance application asks for this information. Policygenius is just using those details to fill out the carrier’s application.
Rates are set by the state, so they aren’t changing your rates based on your income.
A big part of underwriting is financial. “Need and purpose” is a common term that explains why you’re buying insurance.
You can’t make $50k a year and get $10 million in life insurance.
If you think this is intrusive, try applying for disability insurance when you’re self-employed. You’ll have to send the agency your last 2 tax returns.
The main purpose of life insurance is to cover the financial loss from your death. You need to qualify for the coverage amount; you can’t just choose any amount you want. This applies to all life insurance companies.
I understand your frustratio it can feel overwhelming. Policygenius asks for detailed financial info to get a full view of your finances. This helps them recommend the right coverage for you, making sure the policy fits your budget and needs.
Policygenius and similar platforms collect this information to give you personalized advice and make sure the insurance options fit your needs. If you’re worried about privacy, you should talk to their customer service or check their privacy policy to see how they use your data.
These comments are right. As brokers, carriers, and agents, we know there’s a minimum amount we can ethically insure you for to meet your needs. But there’s also a limit we can’t over-insure you because it needs to be affordable. We need some financial info to ensure you get coverage that fits your needs and that you can keep up with, so you don’t end up without enough protection. A local independent broker can explain why they ask certain questions and make sure you get the right coverage to feel confident.
