The Life Insurance Application Process
Your Life Insurance Application Broken Down
Let’s take a look at how the application process really works.
Are you actually wanting to protect your family and Assets, or going through the motions?
What to expect when purchasing your Life Insurance and what’s to come with the Life Insurance Application
Wondering about the life insurance application? How long does it take? What’s involved.
Let’s start covering this topic in more depth.
So you have decided to complete a life insurance application with your agent.
Now it’s time to distinguish between if your serious about this process or just going through the motions. You don’t want to begin a life insurance application process until you are ready for some basic information to be asked. You also need to fully understand the life insurance application process from start to finish. I speak with hundreds of people weekly and have picked up on some very common trends with individuals like you or me. It’s a technology driven
The main purpose of this article is to distinguish the difference between:
If you are actually serious about protecting your family and assets or if you are calling around because it can feel self-satisfying to cross something off your daily to-do list.
YOU SHOULD DO THIS!
Myth I have plenty of time to find life insurance, I’ll wait till my budget allows me to squeeze it in.
Fact Millions of people per year do die with no life insurance in force leaving the loved ones in a state of emotional and financial ruins that could have been avoided.
This article is to inform you of the vast difference between the two. Why it matters and what to expect going forward if you are an individual who takes pride in protecting your loved ones and assets. We will also provide detailed step by step what takes place throughout the life insurance process. Lastly, provide details of what will be asked of you during the process of obtaining life insurance for yourself and family.
So the first thing I pose to my readers to think about is…
Am I serious about protecting my family? Or…….Am I going through the motions and what will be the end results of each?
Let’s take a quick step back, and touch on a few things.
First, this article is once again not intended to be against the slower decision makers, or the people who take plenty of time and consideration before completing the life insurance application process.
It’s to point out, in my time in the industry that these and only these are the two forms of individuals and inquiries I speak with daily across the United States.
Let’s also clarify another point. “ I need to think about” or “I Need to discuss this with my spouse” is a common statement as well and that SHOULD BE THE CASE.
It’s not designed to be a rushed decision nor should it become that, but it’s clear when my clients stay in close contact and continue to reach out with questions that they are still serious about Life Insurance to protect their loved ones. You also have the flipped side, people will not divulge all relevant information related to the life insurance application process. This will only cause issues later. The Life Insurance Carriers will do a little digging to retrieve answers and information.
Now that I have explained the main point to consider, let’s move forward and get you a life insurance policy and complete the life insurance application.
Here is a full scope and breakdown of what to expect going forward throughout the life insurance application process.
The First Question I usually ask is, “Are you serious about Life Insurance for yourself and family?”
You have now answered Yes so here is what to expect before diving into the life insurance application.
I do disclose this same information to all clients and or potential clients. It usually indicates early on in the process how serious they are about obtaining Life Insurance.
Several moving parts go into a completed Life Insurance Policy and a smooth life insurance application process. It’s way more work than people realize that takes place behind the scenes by not only myself but all Agents across the United States.
If your speaking to a customer service representative for a Major Captive Insurance Agency, that’s a completely different story.
Yet, myself and Business Partner take pride in helping people regardless of circumstances they may be facing if we distinguish that they are serious and want and need the help. We want to take you through the life insurance application. We also want to make sure we are not wasting your time in the process. Making sure your life insurance application is complete and detailed. It can determine what rate you receive in the end.
Everyone who calls during your life insurance shopping days is a telemarketer or attempting to sell you a policy.
A majority of the sites and information published on the internet by professionals who take there Insurance Agency, clients and careers seriously, are truly trying to help and find something that fits your current needs, protection desires and budget. Taking someone through the life insurance application without having all details will waste everyone’s time.
So now for the main event!!
This is where many potential clients and people decide they are not serious if often within one or several of these steps and expectations throughout the process.
So seeing it ahead of time or throughout the process may give you some insight and clarity of what’s coming next during the life insurance application process.
You have submitted a formal inquiry to an Agent about a Life Insurance Policy and spoke to him about rates.
You Decide you are now ready to move forward. But are you?
Your Life Insurance Agent (if Independent) has already navigated through several options for you, used his industry knowledge and found something for you that he believes will suit you.
He informs you and states “Great Let’s Get Started”.
Here is where I’m much different than most Life Insurance Agents you have spoken to in the past or may encounter in the future.
When you say “Great Let’s Get Started”
I start by saying well, slow down a second and let’s cover what’s coming next to make sure you are serious about purchasing Life Insurance and completing the life insurance application.
Agent’s who skip this step, waste not only your time but there own time.
I also have a family and other clients to tend to which I try and give the most outstanding service to so I like to know I’m speaking with someone who is serious.
Here is when the transparency and “Why’s” begin.
I’m now going to collect sensitive information about you and your family.
This will include Social Security Numbers, date of births, drivers license numbers. Often times, depending on the Life Insurance Carrier, even the banking information for the policy premium payments. All Life Insurance applications will ask for these during one step or another. No way around it regardless if it’s face to face or over the phone or through email.
This is where early in my career, I would spend 35 minutes speaking to a client, finding great options and great rates, answering several questions to find out, they thought I was a scam artist for asking for the information in the end.
This would be wasting both of our time at that point.
I hate to break it to everyone, but if you don’t want to provide that information to a Life Insurance Company or Agent, you won’t be able to get Life Insurance or complete the life insurance application.
Plain and Simple
The questions I ask of you for a reason and laws govern not only the Life Insurance Carriers by state and federally but also the applicants and the information that needs collected.
A Life Insurance Carrier is not going to promise to pay 1,000,000.00 to someone that they can’t even confirm an identity for. The also won’t underwrite an individual who doesn’t want to provide banking information because, at the end of the day, Life Insurance is NOT FREE..
Why is this information necessary?
- The Life Insurance Carrier will your drivers license to run a motor vehicle check. It’s also checking your individual driving history to make sure that you do not have several DUI’s or speeding tickets recently! (Yes you can still get life insurance if so) but this is the primary reason for the Drivers License.
- Your Social Security has been being used your entire life to help confirm your identity. A 1,000,000.00 death benefit payout seems like a great reason to make sure the correct person is getting the money. It also helps with establishing your Citizenship status. Additionally, the Life Insurance Carrier may run a credit history check.
- Banking information allows the carrier to see an initial source of funds for your policy if approved.
Without it, they can’t take your word that you will either provide it later or send them payment after the life insurance application process.
To Underwrite Life Insurance costs money and time. They also want to know that a potential client is serious about the protection.
You are going to have to provide medical details about your current medical state and prior medical state.
Full transparency is the most important factor in this equation. I can’t help you if you don’t want to help yourself.
More information than your aware of is already out in the Medical Information Bureau and the Life Insurance Carriers will either inquire to find out or already have the information available.
I can name countless times I’ve been able to help a High-Risk Individual because they were honest and serious from the get-go.
However, have failed to help an average potential client because he failed to mention something somewhat substantial making it very clear he was not serious.
The Medical Exam
Yes, if you are applying for a policy that is “Fully Underwritten” You will have to complete a medical exam.
Read More about Life Insurance Medical Exam
NO, you will not have to pay for this. NO, you will not have to go to a doctor. And NO the examiners do not work for the Life Insurance Carriers.
They are private companies to avoid conflicts of interest. So now any information you failed to provide will now surface during this exam. Making it important to scroll back to the top of the page and ask yourself
AM I SERIOUS ABOUT PROTECTING MY FAMILY?
Yes, the exam will include a blood draw. So if you hate needles, you will either want to undergo at least one more or look into NON-Medical Exam Life Insurance Policies.
Yes, you will still have to accept your final rate and policy. Often times pay your first premium within a given timeline to complete your policy and have the coverage in force.
You have now decided to take the blood draw and answer the questions. But that does not make it a legally binding contract.
Your premium dollars are your acceptance of the contract and your agent will help navigate you through this process.
Now we have covered what goes into placing your Life Insurance Coverage into effect, protecting your family, whether it was through a Non-Medical Policy, a Medically Underwritten Life Insurance Policy or even a simplified or guaranteed issue life insurance policy, you have a basic understanding of what to expect moving forward.
Again as stated in previous articles. Always attempt to work with an Independent Life Insurance Agent who can provide you with all the information you need to know in regards to your Life Insurance. Agents who go into sensitive manners such as this with clear expectation of what to expect to avoid the hassle for your Life Insurance Agent or yourself.
Don’t take this as a reason not to find information, research Life Insurance policies or carriers or even rates but when you tell your Life Insurance Agent you want to move forward, have a clear understanding of what you will have to complete from step 1 to step 6 to ensure you get exactly what you are looking for and in the easiest manner possible
Article published and updated 2/19/2018
Josh Martin is an Independent Life Insurance Agent licensed in 47 U.S. state helping hundreds of people to secure Life Insurance for affordable rates with Reputable and strong Life Insurance Carriers.