Before you are insured by an insurance company, you will need to apply for a policy. The application for most short-term car and household insurance products require that you state whether you have previously been insured. This is to assist your prospective insurance company in compiling a risk profile. Your profile will determine what cover you are eligible for and what your monthly premium and claim excess will be. When applying for life or medical insurance, factors such as your HIV status and health habits (such as smoking and drinking) will affect your monthly premium and level of insurance cover offered. It is important to note that since insurance is a shared risk service, insurance companies are under no obligation to insure you and insurance cover will usually be forfeited if you are dishonest on your insurance application. It is therefore of the utmost importance to be completely honest when applying for insurance.