Life insurance application: Everything you need to know

Thinking of applying fro life insurance? Here’s everything you need to know.

Life insurance is a form of risk management tool. It ensures that your dependents are financially secure should you pass away during the covered period. But how do you go about applying for this coverage?

Generally speaking, the application process can be quite intimidating for many. Remember, every step is crucial in ensuring that you get a cover that suits your specific needs and you can afford it.

Trethowans
Trethowans

But don’t worry! We will we walk you through the five most important steps in the life insurance application process to ensure that it’s as hassle-free as possible.

Compare life insurance quotes

Once you have determined the amount of money your dependents will require to remain financially stable, the first thing to do is to look at the quotes offered by various life insurance companies. This allows you to purchase a policy that not only suits your needs but is also pocket-friendly.

When comparing life insurance quotes, you can either choose to contact, visit or review different individual insurers’ sites. However, the option we highly recommend is consulting and working together with life insurance experts such as Caspian Insurance. They provide you with refined information gathered from comparing multiple highly-rated insurance providers in the industry.

All you need is to provide details such as your age and state of health. Their quote engine will then estimate how much you can expect to pay in premiums. It’s important to note that this is just an estimate – the underwriting process determines the final rate.

The application process

After selecting a suitable policy and reviewing life insurance quotes, the next step is submitting an application request. A representative from the insurance company will contact you via phone to get the details needed to fill out the application.

Typically, a life insurance application has two parts, one being the short application request you make, while the second part is completed by the insurance company during the call. The interview lasts about half an hour, where you provide detailed information regarding your lifestyle and health.

A medical exam can also be scheduled should it be required.

The medical examination

This is the part most applicants would want to avoid as it can be quite time-consuming while some may feel it invades their privacy. But this is not always the case.

For starters, it’s worth noting that a medical exam doesn’t always take place unless you have previous health issues or underlying conditions. And even then, most involve regular tests such as blood pressure, blood sugar, urine samples, height, and weight.

You might also be required to fill out a questionnaire. The entire process takes less than an hour.

The good thing about an insurance medical exam is that it can be done from the comfort of your home or workplace. The insurer will send a medical professional to the location that works for you for this process.

Here are a few essential tips to ensure that these tests return the best possible outcome;

  • Eat healthy and well-balanced foods.
  • Before the test, drink at least two glasses of water.
  • Schedule the medical exam during morning hours.
  • Avoid stimulants such as alcohol, caffeine, and cigarettes.
  • Get at least 8 hours of sleep.
  • Provide details of any preexisting health condition that you may have.

The underwriting process

Underwriting is the process that determines whether your application will be accepted or denied. It involves examining and classifying your data to determine the level of risk and, if accepted, the amount of premiums to pay.

The entire process is done based on the underwriting guidelines set by the insurance provider. For the majority of healthy individuals, the decision is made immediately.

A policy can then be issued at your initially applied health class or a different one. At this point, you can either accept or reject the offer.

Policy delivery

If you accept the offer presented to you, the insurer will issue the life insurance policy. Usually, you will be asked to accept the required terms and conditions and also pay your first premium. We advise you to keep a copy of the policy for any issues that may arise in the future.

Buying life insurance doesn’t have to be hard

Buying the right life insurance cover doesn’t have to be hard. By understanding the steps we’ve described in this post, you should be able to save time and money.

Did we skip anything or do you need further clarification on any of the stages? Please let us know your thoughts in the comments below.