Understanding the Life Insurance Application Process (2025)

What Is the Best Way to Apply for Life Insurance? Complete Guide to Submitting an Application in 2025 + YouTube Video

The life insurance application process today is much simpler and faster than it used to be. Every day, many people across the United States apply for life insurance.

Despite this, only a small percentage have used applications before or fully understand them. This can make first-time applicants feel intimidated about what they need to do to apply.

Concerns often revolve around the potential challenges and questions they might face.

We’re here to guide you through everything you need to know for a smooth application experience, ensuring you get the best rates possible. All insurers have streamlined and straightforward application systems that improve each year.

By the end of this brief post, you’ll feel confident and positive about understanding the life insurance application process. Get ready to say goodbye to any uncertainties!

 

Understanding the Life Insurance Application Process

To get started, reach out to an experienced independent insurance agent who specializes in life insurance products. I suggest choosing an independent agent like us, who represents a wide range of competitive life insurance companies. Independent agents are dedicated to helping you find the lowest premiums available.

Your agent will guide you through the entire process, addressing any questions you may have. For instance, if you have a medical condition or engage in a risky occupation or sport, your agent can conduct a risk assessment. This ensures that the right insurer is selected for your application, avoiding any unexpected issues.

Your agent will handle most of the work, while you simply need to answer a few straightforward questions. The best part is that there is no cost or obligation for your agent’s assistance.

 

Understanding Life Insurance Applications in 2025: YouTube Video

 

What Type of Policy Should I Apply For?

The next step is to determine the type of policy that best suits your needs. This decision will depend on your reasons for needing life insurance and the duration for which you require coverage. Many individuals opt for low-cost term insurance products due to their affordability.

Term life insurance offers a cost-effective solution with coverage for a specified period. Essentially, it provides temporary protection. If you’re looking for life insurance that remains active throughout your lifetime, a permanent plan like Universal Life might be ideal.

Approximately 90% of life insurance applicants choose term insurance because it is both affordable and practical.

Our agents are well-equipped to guide you in making the best choice. Below is a list of some plan designs available to you:

• Term Life Insurance
• Universal Life Insurance 
• Final Expense Life Insurance
• Return of Premium Life Insurance
• No Medical Exam Life Insurance

Which Life Insurance Company Should I Apply With?

Choosing the right life insurance provider ensures financial security for your loved ones. Below, we highlight the top life insurance companies based on financial strength, policy options, and customer satisfaction.

1. Northwestern Mutual:

Founded: 1857
Reputation: The largest U.S. life insurer by market share (10.71%), Northwestern Mutual is a mutual company owned by its policyholders. It has an A++ (Superior) AM Best rating and consistently ranks high in customer satisfaction.

Key Strengths:

• Dividend payments: Distributed $8.2 billion in dividends to policyholders in 2025.

• Low complaints: Far fewer customer complaints than expected for its size.

• Policy flexibility: Term, whole, universal, and variable universal life options.

2. New York Life:

Founded: 1845
Reputation: A mutual company with an A++ AM Best rating and 7.22% market share.

Key Strengths:

• Stability: Over 175 years in operation.

• Customer satisfaction: Scores of 794/1,000 in J.D. Power’s survey.

• Policy types: Term, whole, universal, and variable universal life.

3. MassMutual:

Founded: 1851
Reputation: Holds a 6.44% market share and an A++ AM Best rating.

Key Strengths:

• High satisfaction: 809/1,000 J.D. Power score.

• Whole life focus: Strong permanent life insurance products.

• Dividends: Consistently pays dividends to eligible policyholders.

4. Lincoln Financial:

Founded: 1905
Reputation: Scores 843/1,000 on J.D. Power’s survey.

Key Strengths:

• Affordable term policies: Competitive rates for term life.

• Local Agents: Nationwide network for personalized service.

• Policy options: Term, whole, and universal life.

5. Guardian Life:

Founded: 1860
Reputation: A++ AM Best rating and 3.25% market share.

Key Strengths:

• Low lapse rates: Policies designed for long-term retention.

• Customizable riders: Chronic illness and accelerated death benefits.

• Mutual structure: Policyholder-owned since inception.

6. Pacific Life:

Founded: 1868
Reputation: A++ AM Best rating and 2.75% market share.

Key Strengths:

• Indexed universal life: Competitive policies tied to market indexes.

• Transparency: Detailed policy information on its website.

• Low complaints: Fewer customer issues than industry peers.

7. Mutual of Omaha:

Founded: 1909
Reputation: 805/1,000 J.D. Power score.

Key Strengths:

• Guaranteed issue: No medical exam required for some policies.

• Simplified underwriting: Quick approvals for qualified applicants.

• Term and whole life: Diverse coverage options.

8. Penn Mutual:

Founded: 1847
Reputation: 1.9% market share and an A+ AM Best rating.

Key Strengths:

• High-net-worth focus: Tailored solutions for estate planning.

• Dividend history: Over 170 years of consistent payouts.

• Policy types: Term, whole, and indexed universal life.

9. Nationwide:

Founded: 1926
Reputation: 840/1,000 J.D. Power score.

Key Strengths:

• Hybrid policies: Combines life insurance with long-term care riders.

• Financial strength: A+ AM Best rating.

• Customer service: Low complaint ratios.

10. Protective Life:

Founded: 1907
Reputation: 2.63% market share and an A+ AM Best rating.

Key Strengths:

• Term life focus: Affordable coverage with conversion options.

• Online tools: User-friendly premium calculators.

• Indexed universal life: Cash value growth potential.

11. Prudential:

Founded: 1875
Reputation: 3.5/5 NerdWallet rating and 5.08% market share.

Key Strengths:

• Innovative products: Indexed variable universal life.

• Global reach: Policies available in over 40 countries.

• Custom Riders: Chronic and terminal illness benefits.

12. Transamerica:

Founded: 1906
Reputation: 3.0/5 NerdWallet rating.

Key Strengths:

• Budget-friendly term: Low-cost options for young families.

• Indexed universal life: Market-linked cash value growth.

• Online accessibility: Simplified application process.

How to Choose the Best Life Insurance Company

When comparing top life insurance providers, consider:

• Financial ratings (e.g., AM Best A++ or A+).

• Policy types (term, whole, universal).

• Customer satisfaction (J.D. Power scores).

• Rider availability (chronic illness, disability).

 

Applying for Life Insurance Over the Phone

Let’s dive into the details of the application process. After selecting an agent and deciding on the type of life insurance product and company, it’s time to formally apply. You can choose between a paper, online, or telephone application.

While paper applications can be lengthy and time-consuming, online applications offer a more efficient option, though some may find the software challenging or lack a fast internet connection. The telephone application provides a quick and straightforward alternative.

During the telephone application, you’ll have the opportunity to answer questions by speaking with a friendly representative from the application department. This process typically takes about 15-20 minutes.

 

What Happens After Your Life Insurance Application Has Been Submitted?

Once you’ve submitted your life insurance application over the phone, you’re almost finished. You can now relax and let your agent and the insurance carrier handle the rest.

As you unwind, here are a few steps that will take place behind the scenes:

Para-Med Visit:

If you’ve applied for a no-medical-exam life insurance policy, there won’t be a physical exam. These plans are popular because the underwriting process can be completed in as little as 24-48 hours.

Even if you’ve applied for a fully underwritten policy and are in good health, the carrier might waive the medical exam. In the worst-case scenario, you may need to undergo a simple paramed exam at your home or workplace. While paramed exams used to be standard, carriers are reducing their use due to the costs associated with testing agencies.

Medical Records:

In some instances, medical records may be required, and your insurance company may request them from your doctor. There’s no cost or effort required from you; this process is handled internally.

Most insurers choose not to request medical records unless absolutely necessary, as the cost can exceed $500.00 in some cases, which the carriers cover.

MIB Reports for Life Insurance Applications:

If a Medical Information Bureau report is needed, your carrier can perform it online. Occasionally, due to serious health conditions, an MIB report is requested to review any hospital stays.

The MIB report is nothing to worry about and is quite common. It provides information about past hospital visits and the types of tests or procedures undergone.

Motor Vehicle Reports:

Your company may run a Motor Vehicle Report (MVR) to check for driving infractions, such as speeding tickets or driving under the influence. Questions about the applicant’s driving history are typically included in life insurance applications.

Credit Reports:

For applicants requesting a very high face amount (death benefit), the insurer may request a credit report to ensure everything is in order.

In rare cases, individuals in financial difficulties might seek a large face amount with the intention of committing suicide, allowing their dependents to collect the policy payout.

Pharmaceutical Check:

Insurance companies often conduct online checks to determine prescription drug purchases. For instance, some applicants may attempt to conceal illnesses like diabetes or heart disease.

Prescription drug purchases reveal the medications bought, enabling underwriters to understand their purpose. Unfortunately, some individuals try to deceive life insurance companies regularly.

 

How Long Are the Underwriting Times?

How long does the underwriting process take from start to finish?

The underwriting process for conventional life insurance applications typically takes between two to four weeks. This timeframe can vary depending on the insurance carrier and the applicant’s health, potentially being shorter or longer.

A significant factor affecting the timeline is how quickly your doctor can provide your medical records if they are needed. Once these records are received, the presence of medical conditions can influence the duration of the process. Applicants without medical conditions generally experience shorter underwriting times.

For those opting for a no-medical-exam life insurance application, the process is much quicker, with a turnaround time of just 24-48 hours. It’s important to note that non-med policies tend to be slightly more expensive.

Understanding Your Life Insurance Application Approval

The final step in the process is determining whether your policy is approved with a specific health classification or declined due to a serious medical condition. In most cases, your policy will be approved, and the company will assign you a health classification and inform you of your premium.

Once approved, you’re all set! Simply pay your first premium and sign off to accept the policy.

If you’re not satisfied with the outcome of your approval, you don’t have to accept the offer. Your agent (hopefully us) can automatically reach out to multiple other companies to get their rates based on your application or contact the original company to reconsider your rate class.

Our agency will handle this before presenting you with the original offer from your carrier. Remember, accepting the policy is entirely up to you. You are not bound by any contract in any way, shape, or form.

 

Our Final Thoughts

As mentioned earlier in this blog post, once you complete your telephone application, there is very little work left to do.

If you choose to purchase your coverage through our agency, we will guide you through this straightforward process to ensure you fully understand everything.

Thank you for taking the time to read this blog post. I hope you now have a clearer understanding of life insurance applications.

All the best,
Jack Venturi