What Happens Next After You Submit a Life Insurance Application?
This article is going to explain what happens when you apply for a life insurance policy with one of the major carriers. This blog post will represent a life insurance application checklist that will help you know what to expect once you decide to apply. We are going to stick to the subject and not cover specific life insurance companies or the various plan designs and premiums, which would be for another article altogether.
This is the information you should understand in advance, so you will experience a simple and easy application process from start to finish. With a little knowledge, you will never experience any surprises along the way. Your agent will be your key to success so work closely with him and listen to his recommendations. Always keep in mind that your independent agent does not work for an insurance company, he works for you!
How Smoothly Your Application Goes Will Depend on You
Always tell the truth and never conceal medical issues from the insurance company or your agent. This will eliminate unwanted surprises and problems later in the application process.
Your initial step is to acquire an experienced independent agent (broker) such as us, be upfront and truthful and supply your agent with all the details if you have a health condition, a dangerous hobby, or a hazardous occupation. This is very important to the life insurance company’s underwriting team as they process your application.
For example, when your agent asks you a question concerning your health history or your height and weight, he is not just trying to pry into your private details out of curiosity; he needs this information to determine what specific insurer to apply with and what kind of rates you should expect which will depend on your health classification that your insurance company will assign to you. Your agent wants to help you get the best policy at the lowest premiums.
Misleading your agent by withholding pertinent information about your health history or lifestyle always spells trouble. Over 22% of applicants try to do this and it never works. Some applicants try to mislead carriers in an attempt to get the lowest rates. The companies expect this and are watching for these omissions closely. There are more honest ways to secure the best rates.
What Life Insurance Company Should You Apply With?
Every company underwrites their applications differently. Your agent will recommend the best insurer for your specific needs.
Leave this decision up to your agent, he will know from experience which one will be the best fit for you. Applying with the correct insurer is going to be one of your most important steps so you can receive the lowest rates. Your agent will be able to determine your best choice by asking you questions concerning your health history and other details such as a possible hazardous occupation, sport, or hobby. This is called medical pre-screening and only takes a few minutes.
This is why it is vital to be honest and upfront with your agent. All life insurance companies underwrite applications differently. Leave the choice of what company to apply with up to your agent. If you have a personal preference, inform your agent and he can give you his recommendations.
What Information Do Life Insurance Carriers Review?
All the information below is critical information for insurers so they know how to determine the applicant’s risk exposure. A large percentage of applicants lie in their applications, so they have to be very thorough.
*Your Health History:
This is the number one category of information insurers look closely at. They use extensive measures such as asking for your doctor’s medical records, Medical Information Bureau reports, Para-Med nurse visit results, and telephone interviews. If there is anything in your medical history, they will find it.
Medical underwriters normally run checks on all medication purchases. Every time you purchase prescription medication, pharmacies automatically record the purchase in a pharmaceutical database.
The statistics clearly indicate that people with credit and financial problems are much more likely to have much higher claims. This also goes for auto and homeowner insurance, health insurance, and commercial business insurance. They can easily decline you for auto and homeowner insurance if you have a poor credit history.
*Motor Vehicle Reports:
Life Insurance applicants who have poor driving records have a higher statistic of being killed in a motor vehicle accident. Having your driver’s license revoked or suspended for drunken or reckless driving can trigger a decline in your application.
After You Submit Your Application, the Insurer Is in Complete Control!
Every aspect of your application is now going to be controlled by the insurers underwriting team. The information you supplied to your agent will be put to the test. If you withheld any information from your agent, the underwriters will surely find it.
This is why you have to work closely with your agent to allow him to look out for your best interest before you submit your application. This will pave the way for a nice, smooth application process, and the end result will be the most competitive premium you could ever qualify for.
Applying for life insurance has never been easier than it is right now. If you have a medical condition, a dangerous occupation or a hazardous sport or hobby, we can help you get the best policy at the lowest rates. We are available to help you seven days a week, call us today. There is never any obligation or cost for our help.
All the best,