The process to get a life insurance policy starts with filling out a life insurance policy application. From there, your application will undergo a procedure called financing.
This is when a life insurance policy expert known as an expert decides whether to offer a life insurance policy and at what cost. Authorization and fees are based on your risk course.
There are 2 types of financing:
- Traditional financing. With traditional financing, you complete a life insurance policy application and undergo a clinical examination.
- Simplified financing. With efficient financing, you usually complete an online life insurance policy application quickly. Clinical examination is not required.
Keep reading for more in-depth information about the traditional financing process and the advantages and disadvantages of traditional and efficient financing.
Traditional Financing Process
- Application. You will usually complete a life insurance policy application with help from your insurance representative. Your representative will then send it to the insurance company’s finance department. (Quick note: Insurance fraud is a crime in every detail, so be honest when answering every question!) While you’re delaying, your representative may request payment of the first premium in the purchase to “tie up” your coverage. This gives you and your beneficiary temporary coverage while you hold off on hearing back from the insurance provider.
- Clinical examination. Usually described as a “paramedic check,” a life insurance policy clinical exam typically involves taking your key indications, collecting blood and urine samples, and gathering information about you and your family’s clinical background. Sometimes a treadmill or EKG test is needed. All information, the exam will take much less time compared to thirty minutes. Insurance providers usually take tabs.
- Review process. Experts will carefully review your life insurance policy application and clinical exam results. He or she will also consider several other factors such as your driving record, entertainment, credit background and more. It usually takes at least a few weeks to find out if you are offered coverage.
Simplified Financing Process
- Application. Usually this kind of coverage is offered online. You will answer several health-related questions to see if you are approved for coverage and, based on your answers, you may be offered life insurance policy coverage immediately.
- No clinical examination. This component attracts many individuals. There is no clinical examination, no blood or urine samples, and no waiting time for test results.
- Additional history. By signing the application and agreeing to the terms, you are generally giving the life insurance policy company consent to run your personal information through several data sources, consisting of the Clinical Information Bureau. The data source can flag anything that looks unusual.
How to Use for Life Insurance
Among the best ways is to deal with a certified insurance representative who can guide you through the entire process. If you don’t have a representative or consultant to work with, check out our representative locator. You can also work directly with insurance providers. The following are corporate partners who support our charitable causes and can help you find protection directly or through their representatives or advisors. The key is to start today.