Skip to main content

110921 What is the process for how to get life insurance?

 

The process for how to get life insurance starts by filling out a life insurance application. From there, your application will undergo a process called underwriting. 

This is when a life insurance expert known as an underwriter decides whether to offer you life insurance and at what cost. Approval and costs are based on your risk class.

There are two types of underwriting…

Traditional underwriting.

With traditional underwriting, you fill out a life insurance application and undergo a medical exam.

Simplified underwriting.

With simplified underwriting, you typically fill out a quick online life insurance application. A medical exam is not required.

Keep reading for more in-depth information about the traditional underwriting process and the pros and cons of both traditional and simplified underwriting.

The Traditional Underwriting Process

The application.

You’ll usually fill out the life insurance application with help from your insurance agent. Your agent will then submit it to the insurer’s underwriting department. (Quick word of caution: Insurance fraud is a felony in every state, so be truthful when answering each question!) While you wait, your agent may request a check for the first premium payment in order to “bind” your coverage. This gives you and your beneficiary interim coverage while you wait to hear back from the insurer.

The medical exam.

Commonly referred to as the “paramedical exam,” the life insurance medical exam typically involves taking your vital signs, collecting blood and urine samples, and gathering information about you and your family’s medical history. Sometimes a treadmill test or EKG is required. All told, the exam should take less than 30 minutes. The insurer usually picks up the tab.

The review process.

The underwriter will carefully review your life insurance application and medical exam results. He or she will also consider several other factors like your driving record, hobbies, credit history and more. It usually takes at least a few weeks to find out if you’re offered coverage.

Traditional Underwriting Pros and Cons

Pros

You can usually get a higher coverage level than you can with simplified underwriting.

Coverage typically costs less, on a dollar-for-dollar basis, than coverage from simplified underwriting.

There are more options to customize your policy to your exact needs.

You usually work closely with an agent, who can help you calculate how much coverage you really need to protect your loved ones.

Cons

It can take several weeks to get a coverage decision.

You must undergo a medical exam.

There’s usually a lower approval rate than there is for simplified underwriting applications.

 

The Simplified Underwriting Process

The application.

Typically this type of coverage is offered online. You’ll answer a few health-related questions to see if you qualify for coverage and, based on your answers, you may be offered immediate life insurance coverage.

No medical exam.

This part appeals to many people. There is no medical exam, no blood or urine sample, and no lag time waiting on test results.

Additional background.

By signing the application and agreeing to the terms, you typically give the life insurance company permission to run your personal information through several databases, including the Medical Information Bureau. The databases may flag anything that looks out of the ordinary. 

Simplified Underwriting Pros and Cons

Pros

The application is often a quick, convenient online process with an instantaneous decision.

If instantaneous coverage isn’t offered, it usually only takes days instead of weeks to get a coverage decision.

No medical exam is required.

There’s typically a higher approval rate than there is with traditional underwriting.

It’s a viable option for anyone who can’t get life insurance through traditional underwriting.

Cons

It’s difficult or impossible to get higher limits of coverage that you may need.

Coverage typically costs more, on a dollar-for-dollar basis, than coverage from traditional underwriting.

There’s no way to customize your policy to your exact needs.

It can be harder to know if you have the coverage level you need if you don’t work with an agent.

 

How to Apply for Life Insurance

One of the best ways is to work with a licensed insurance agent who can walk you through the entire process. If you don’t have an agent or advisor to work with, contact

Hayden Childs

Alabama Licensed Agent

(205) 269-1382

Shcmail34@yahoo.com

www.haydenchilds.net

 

The key is to start today!

 

https://lifehappens.org/life-insurance-101/what-is-the-process-for-how-to-get-life-insurance/

 

 


Comments

Popular posts from this blog

083121 Do You Know the Whole Life Story?

  Change comes at us from every angle as people update and upgrade everything from their diets to their devices, seemingly every day. When we enter adulthood as a young professional, we never imagine that we are only a couple dozen phones or a handful of trendy diets from marriage, parenthood or even retirement. Diets and devices can be great, but not all change is good, right? At every stage of life, financially confident people know that they can embrace the good and safeguard against the not-so-good with solutions designed to do just that. Enter: whole life insurance. Not just your parents’ insurance, whole life can actually benefit you no matter where you are in life.    THE BEGINNING: YOUNG PROFESSIONALS    When we’re young and focused on our dreams, we rarely consider the possibility of an unexpected, devastating change. What would happen if you died prematurely? It may be unsettling to think about, as it would be very painf...

101724 What Cancer Cannot Do...

“Cancer can take away All of my physical abilities. It cannot touch my mind, It cannot touch my heart, And it cannot touch my soul.” Coach Jim Valvano *** What Cancer Cannot Do Cancer Is So Limited Cancer Cannot… Cripple love! Corrode faith! Eat away peace! Kill friendship! Silence courage! Invade the soul! Quench the spirit! Destroy confidence! Reduce eternal life! Erase the promises of God! Obliterate happy memories! Shatter the hope of Heaven! Lessen the power of the resurrection! Keep the faithfully obedient from Heaven! - Dr. Robert L. Lynn *** To all walking this road… Blessings and love. Cancer took away from me Two special ladies in my life. My mother and mother-in-law; Knowing I will see them again And knowing they are in a Better place gives me hope And comfort. - Hayden Childs *** Don’t worry your life away Waiting for the elusive prize At journey’s end. The journey is the prize. - Marsha Mercan  *** In this world it is not what we take up, but what we give up, that make...

022824 Real Life Story...

Real Life Story…   “Tom’s motto was… Be prepared. You don’t know what life will hand you.” Jeanie and Tom had an idyllic life… a strong marriage and two children. But when Tom was tragically killed in a snowmobiling accident at just 45, the world collapsed for Jeanie and the kids. Grief overwhelmed them, but thanks to Tom’s life insurance, financial tragedy did not. It paid for the funeral and the family’s bills and expenses. And it set them up for the future so they could continue living in their home, and plan for college and retirement. Life insurance did everything Tom had planned for it to do.   - Via Lifehappens   At Lifehappens … February is traditionally insure your love month. One of the greatest ways you can show your love For your family is to be insured If the unthinkable happens.   I have had people tell me “I can’t get life insurance”   Friend I now have the ability to Insure you even if you...