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Frequently Asked Questions: Life Insurance


What happens after I request an application for life insurance? How long will the process take?
How can I help expedite the life insurance application process?
Do I have to send money with my application?
What does the medical exam entail?
How can I pay for my term life insurance?



What happens after I request an application for life insurance? How long will the process take?

The first step is to request a life insurance quote, which you can do in the form of an online insurance quote if you wish. If you are happy with this life insurance quote, you can then request an application.

Life Insurance Application: An application will be mailed to you for your review and/or completion and signature (if for some reason we cannot facilitate your application you will be notified immediately). We will provide you with a postage-paid envelope in which to return your completed application.

Medical Exam: You will be contacted to set a time for a medical exam. The exam normally takes place at your home but can also be scheduled at the examiner's office or your work. The exam takes about 30 minutes and generally consists of a height and weight measurement, blood pressure reading and blood and urine sample. If you request, results of the exam will be provided to you.

Underwriting: After your application and medical results are received by the insurance company, underwriting will begin. Underwriting is the term used to describe the process the insurance company undertakes to determine whether or not you are approved for life insurance coverage. During this process, the company will review additional information and/or request medical records from your doctor. The normal underwriting time is 4-8 weeks.

Decision: After your exam results and application are reviewed by the insurance company, we will notify you as to whether or not you were approved for coverage. There are three scenarios that can occur at the decision stage:
  1. Your application is approved at the same rate class as was requested. In this case your policy will automatically be mailed to you.
  2. Your application is approved at a higher rate than what was quoted. For example, you applied for Preferred but your cholesterol was elevated on the health exam and the insurance company approves you at Standard. In this case we will notify you that your application was approved at a higher rate and ask whether or not you are still interested in coverage. If you are, your policy will be mailed.
  3. Your application for life insurance coverage is denied. If your application is approved at a higher rate than you applied or if your application was denied, you will be provided the reason(s).


Coverage: Once you receive your policy, satisfy any outstanding requirements, and pay your first premium (if you did not elect temporary coverage if it was available), your policy will go into effect and your coverage will begin.


How can I help expedite the life insurance application process?

The most time-consuming portion of the application process involves the satisfaction of medical requirements. Medical requirements vary by insurance company, by applicant age, and by amount of insurance purchased. The insurance company needs all the required information before the underwriting process can begin. Whether it is the completion of a brief paramedical exam or requiring medical information from your doctor, your assistance in ensuring that these requirements are satisfied will dramatically affect the processing of your application.


Do I have to send money with my application?

No. We do not require you to send money with the application. However, many life insurance companies will provide you with limited temporary coverage while your application is being reviewed if you remit the first premium payment with your application. In some instances, temporary life insurance coverage is not allowed. When you request an application, we will notify you if temporary coverage is an option.


What does the medical exam entail?

For individual life purchases, you will be classified based on height, weight, nicotine use, and other health factors. Your health status will determine what rate class category you fit in, so even if you have some health problems, you could be covered. There is no public list of factors available; however, your agent should explain what criteria determine the class into which you fall.


How can I pay for my term life insurance?

You can pay your life insurance premiums annually, semiannually, quarterly, or in monthly payments. Many companies also allow you to have your premium automatically deducted from your bank account or charged to your credit card.


   
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