Most people that begin a life insurance application find them a little confusing. Either they don’t understand the questions or they don’t understand the insurance terminology. I am writing this blog post so you can use it as a easy to understand guide. This will give you a better understanding of the life insurance application process. This information will also help enable you to receive the lowest rates once you do apply for life insurance. This goes for high risk life insurance also. We now use quick and simple telephone applications.
Most of the people that apply for life insurance have no knowledge of what to expect. This can lead to confusion and stress which never should be present during an application process. I will show you how to apply for low cost life insurance with confidence.
Applying for the best life insurance rates 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 both.
I am sure you heard the expression; “first things first”.
The first step you should take is to locate an experienced life insurance agent or broker. A life insurance professional that specializes in life insurance can help you make wise decisions and answer your questions. His experience and input will prove extremely valuable from beginning to end. Many people try to research individual life insurance products and premiums only to chase their tail. Sometimes they get frustrated to the point they give up looking for life insurance their dependents desperately need.
Your agent can review your specific information that will determine your health classification.
Your health history, any dangerous sports or occupations will have a direct impact on your final rates when you apply. This information is critical for your agent to know so he can predict the most likely rate class. Especially what life insurance company you should 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. When people shop for life insurance, their priority is to find the best online life insurance quotes.
Here is the most common problem I see when consumers are shopping for life insurance and using a quote engine.
Comparing life insurance quotes on a modern quote engine is an excellent way to compare rates. These rates might 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. 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 be careful with what you see. You may probably be looking at rates you will not be able to qualify. This would hold true 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. This would be 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. This would be 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. 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. This will 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 Universal Life insurance. Our quoting system displays over 40 of the most trusted life insurance companies in the nation. You will get 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 that no agent can sell for less than another. This also goes for buying direct from the carrier themselves.
When you see website advertisements such as “Save up to 72%” or “We offer the lowest rates” just consider this. 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 premiums are negotiable as if you were purchasing a new Sony Television. You can easily verify that life insurance premiums are regulated by law by simply contacting your states Department of Insurance. Many people are totally unaware of this. 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. This will make 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. You could very easily fail to and fail to answer a question.
The life insurance company will contact a Para-Med service to schedule an appointment to stop over. They normally check you height and weight. Depending on the volume of life insurance you are applying for will determine what other tests will be taken. Be careful so you don’t drink a lot of drinks such as coffee or tea. These drinks contain 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 to the questions that they ask.
Failing to answer a question without an honest answer could open the doors to a lot of problems. This means either right now or down the road if you pass away. The life insurance company could find out you concealed important information on the application. The life insurance company is only doing their job asking these questions. 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. The database shows all the medication purchases and when and where you purchased them.
The insurance company will also request your driving record from the Department of Motor Vehicles.
The driving record check is to review any driving violations you have made. Poor driving history could put your life in danger of a fatal car accident. The United States has high fatality statistics on the American roads and highways. Anytime you apply for life insurance, a motor vehicle report is requested.
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. 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.
It is very common for a life insurance company to request medical records from you Doctor’s office.
The records that they request is usually called an Attending Physician’s Statement. Again this is very common and should be considered standard procedure that could further answer some questions they have. You will never be involved to the request of records. The insurance companies usually have third party companies to the leg work to get the records. Your doctors medical records very often help to get you the very best life insurance rates.
How long should this application process take from start to finish.
On an average a fully written underwriting process should take between 3 weeks to 2 months. This usually depends on how fast the medical records come in from the doctor’s office. There can be special lab reports coming from any hospitals. The companies have to pay for the records so payment has to be made first. The payment has to be received before the medical records will ever be sent out.
Most of the work is always performed by the life insurance company you have chosen. It becomes more of a waiting period for the applicant. If you follow this guide you be placing yourself in a position to get the best life insurance policy. Once your life insurance goes into force your family will have the financial security. You will have the peace of mind that they will be well taken care of if something happens to you. Thank you very much for reading our blog post titled Applying for Life Insurance and Securing the Lowest Rates.
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