Most people that plan on applying for life insurance have no experience on what to expect from life insurance applications. The application process is very simple but it can be intimidating to many new applicants that never applied before. This article is going to show you what to expect as the process progresses through the various steps. I am going to make sure you have confidence and feel comfortable throughout the whole nine yards.
You no longer have to complete those long-winded paper applications anymore due to modern telephone applications.
Great News! Before we move much farther, I wanted to mention that there are new ways to apply for life insurance. The best way is to simply apply right over the telephone and get rid of the intimidating 30 page paper applications. The telephone applications take about 15-20 minutes and are a much more effective way to apply for low cost term life insurance.
Some agencies still use paper life insurance applications but we want to make it as easy as possible for our clients. There are also online life insurance applications but some people do not have a computer and the telephone is still easier.
Step #1 – The life insurance application is where it all begins. Thanks to the telephone app, it is a simple beginning.
Our agency uses a “SnapApp” which is an online application that is completed by our agents with the applicant over the phone. This type of application “gets the ball rolling” in other words and takes about 5-10 minutes. It is a preliminary application that is used to initiate the application process. A telephone application team of young ladies review the SnapApp and then contact the applicant to set up a time to perform the formal telephone application.
The actual telephone application consists of a series of questions and answers just like the online or paper applications would function. The application is the backbone of the whole application process. The information placed on the application sets a precedence for the remaining steps in the application process. You will want to be 100% honest with every question that is asked. This procedure is the same as if you completed an online or paper application.
Step #2 – The Para-Med visit is the next step where a nurse will perform a simple and basic medical exam of the applicant.
The nurse will call to make an appointment to visit you at home or your place of employment. This basic physical will consist of taking your height and weight along will a small blood and urine sample. Your blood pressure is normally taken to check for hypertension. This is where you do not want to drink any beverages with caffeine which will increase your blood pressure.
High blood pressure can increase you life insurance rates. Most of the time, the Para-Med nurse collects your signature for the application you completed a few day prior.
Step #3 – Medical records are requested otherwise known as an Attending Physicians Statement.
The life insurance company orders these records from your doctors office. They may also request records from your hospital if you recently had tests performed. The life insurance company has to pay the medical providers for these records. It is not uncommon for a batch of medical records from one provider to cost over $400.00. There is never any cost to the applicant for obtaining medical records.
Step #4 – A Motor Vehicle Report is requested by the life insurance company.
The life insurance underwriters want to check on the safety of the applicant while driving his or her motor vehicles. They mainly look for serious infractions such as multiple speeding tickets within the last three years. Also for arrests for drag racing, reckless driving, DUIs, DWIs and other major charges that could cause a serious accident. Their main concern is checking to see that the applicant does not drive recklessly.
Nearly 1.4 million people die in auto accidents each year in the United States, This is an average of motor vehicle 3,461 deaths a day.
Step #5 – Checking the applicants financial credit rating.
Insurance companies check credit ratings on other forms of insurance such as auto and homeowners insurance as well. Their only concern is to see a pattern of credit problems that could lead to the insured deliberately triggering the life insurance as a last resort. Every year people take their own life because of mounting financial debt. All life insurance applications has a few questions concerning income and expenses. They concentrate on reviewing the income vs. debt ratio to make sure there is no current state of financial jeopardy.
Step #6 – Your life insurance company will check for any prescription medication use.
Life insurance companies use a centralized computer system that will indicate every time you purchase prescription drugs. It will show what specific drug was purchased, where it was purchased and when it was purchased. Make sure you answer the prescription medication use questions thoroughly. Let them know about all medications you have used. They will easily find out what you have used so don’t conceal anything.
How long does the underwriting time take from start to finish?
The underwriting time on a conventional life insurance application takes on an average of four to six weeks. This time period can be shorter or longer depending on the life insurance company you use. Also, one of the main factors is how fast can your doctor supply the life insurance company with medical records.
Many doctors offices are notoriously slow in getting the records put together and sent out. If an applicant does not have many medical conditions, the underwriting time will be shorter. No Medical Exam life insurance applications can sometimes take 24-48 hours but these policies usually cost more.
Why does the application process take so long using a fully underwritten application?
Many people ask why the underwriting process can take so long for a conventional policy vs. No Medical Exam life insurance. The answer to this question is simple. The life insurance company collects more information so it knows more about your health and lifestyle. If they do not have information they charge more because they are taking a larger risk insuring your life.
If you want to get the absolute lowest premium possible, apply for a conventional policy with full underwriting. When you take a look at how much money you will be saving each year. Multiply that by the projected number of years you will own the policy. The amount of money you will save in the long run will be worth the extra effort.
The process of completing life insurance applications is now very quick and easy thanks to improved technology.
Don’t hesitate to call us toll free with any questions you may have. Our office has been helping people find the best life insurance rates for well over 20 years. We walk every new applicant through the underwriting process step by step to eliminate any possible confusion that could arise.
Compare the best online life insurance quotes with our websites quoting system.
Feel free to use our quote engine to compare the best term life insurance rates online. Simply complete the basic quoting form and then press the submit button it is that simple. You will be able to compare instant life insurance quotes from over 40 of the best life insurance companies. Take a moment to read our about us page to learn more about us and our life insurance business. Thank you for taking the time to read this article, I hope it answered many of your questions.