This blog post will act as a simple to understand guide which will give you a better understanding of the life insurance application process. This information will also help enable you to receive the lowest life insurance rates once you do apply. Most of the people that apply for life insurance have no knowledge of what to expect and this leads to confusion and stress which never should be witnessed during an application process.
Applying for low cost life insurance should be a smooth and successful experience if handled in a professional manner. I will cover the necessary bases to help you become a smart life insurance shopper and applicant.
I am sure you heard the expression; “First things First”
The first step you should take to make this an effective event is to locate an experienced life insurance agent or broker that specializes in life insurance products to help you make wise decisions and answer your questions as you move along in the process. His or her experience and input will prove invaluable later on. Many people try to research affordable life insurance products and premiums only to chase their tail and get frustrated to the point they give up looking for the life insurance product their dependents desperately need for their financial security.
After you have a life insurance professional on your side it will be time to review the incidentals that will determine your rate classification.
Such information as your health history, any possible dangerous sports or a hazardous occupation will have a direct impact on your final rates when you apply. This information is critical for you agent to know so he can predict the most likely rate class and especially what life insurance company to apply with based on this information. A simple pre-screen may be necessary to locate the most applicable carrier to apply with. What rate class you qualify for will vary between one life insurance company to another.
What is a medical “Pre-Screen and when is it necessary?
A pre-screen is a very simple process of reviewing an applicant’s medical conditions, dangerous sports or occupation with several life insurance companies to see who will give the best offer to the applicant which in essence is just another word for the lowest premium. A pre-screen is always performed by a life insurance agent or broker at no cost to the applicant. Your personal information is never given to the insurance carriers. This is done before the application process begins. Knowing what company to use is not just considered a good idea, it is crucial element if you are trying to receive the lowest possible premium.
Here is the most common problem I see when consumers are shopping for life insurance and using a websites quote engine.
Comparing life insurance quotes on a modern quote engine is an excellent way to compare rates, but have little value if you do not know what your correct rate class will be. Unfortunately this is usually where the problems usually can begin. This is an extremely important subject that more than 90% of the life insurance shoppers don’t understand when reviewing life insurance quotes on one of these excellent time saving tools. The default setting on modern quote engines are set on a “Preferred Plus” otherwise known as “Super Preferred”.
When reviewing life insurance rates in this setting, you will be probably looking at rates you will not be able to qualify for unless you are in above average health and take no medication. Less than 10% of applicants will qualify for Super Preferred rates. These life insurance shoppers walk away believing they know how much life insurance will cost them which will be exactly correct if they fit into this Super Preferred rate class. The drop down menu that lists all the rate classifications have to be set accordingly in order to show accurate rates for this perspective applicants detailed information.
Once your expected rate class is known, it is time to compare Term life insurance rates on a quote engine and finally choose the most applicable life insurance company to apply with.
If you are shopping the market for low cost life insurance, your agent will walk you through this step by step process which inevitably will direct you to the most affordable Term life insurance available. The same procedure is exactly the same when looking for permanent life insurance such as the popular Universal Life insurance products also. Our quoting system displays over 40 of the most trusted life insurance companies in the nation to give you the best choice to choose from and to help locate the lowest premium on the market.
Life insurance rates are regulated by law which means nobody can sell for less than another for the exact same life insurance policy.
When you see such website advertisements such as “Save up to 72%” or “We offer the lowest rates” just consider the common fact that these are statements designed to make you believe that these people can discount your rates above and beyond their competitors. They are trying to make you believe that life insurance premiums are negotiable as if you were purchasing a Sony Television or a Chevy Impala. You can verify the premiums are regulated by law by simply contacting your states Department of Insurance. Many people are totally unaware of this and they believe if they keep shopping around they can keep finding lower rates for the same exact life insurance product.
The next step in the process is actually completing a life insurance application.
Years ago there was only one type of application which was completed on paper. Nowadays we have online applications and the easiest of them all is now the telephone application. The telephone is by far the quickest and the easiest way to go. An underwriting assistant asks the questions and you answer them over the telephone. If you have to explain your answer you can easily do it while you are on the phone which makes everything so much easier and quick. The old paper applications were very time consuming and there was always the possibility you could make an error and fail to answer a question.
The life insurance company will contact a Para-Med service to schedule an appointment to stop over and check you height and weight. Depending on how much life insurance you are applying for will determine what other tests will be taken at the same time. Be careful so you don’t drink a lot of drinks such as coffee or tea which contains caffeine which will increase your blood pressure and indicate Hypertension. Eating fatty foods such as Pizza the night before will spike you cholesterol reading and indicate you have high Cholesterol.
Always tell the truth on an application but remember to limit you answers strictly to the question that they ask you.
Failing to answer a question without an honest answer could open the doors to a lot of problems either right now or down the road if you past away and the life insurance company find out you concealed important information on the application. The life insurance company is only doing their job asking these questions so you always want to tell the truth and be up front at all times. If you take any prescription drugs tell them when the questions come up on you application. The odds are they already know with the help of a computer database that shows all the medication purchases and when and where you purchased them.
The insurance company will also request you driving record from the Department of Motor Vehicles.
The driving record check is to review any driving violations you committed which could put your life in danger of a fatal car accident. Due to the fact that the United States has high statistics in deaths on the countries highways this question must be asked.
Telephone interviews may arise if there are any clarifications required for any of the answers to your application.
The telephone interviews are simply considered to be standard procedures and these interviews do not mean there is any impending problem on your application. Just like the original telephone application that you took in the beginning, just tell the truth as usual. The life insurance company telephone staff are usually always very polite and easy to work with. Telephone interview regarding additional information may usually take 10 or minutes to complete.