You understand the importance of providing financial protection for your loved ones left behind. And are ready to buy life insurance…so what next?
It is time to start the application and underwriting processes.
- Fill in and sign the insurance application
- They will want a complete medical history.
Tip: By getting your doctors’ information and all your prescription information ahead of time, you can expedite the process.
- Decide if you want conditional coverage (this coverage begins immediately after signing an insurance application). While going through the underwriting process, you will prepay the monthly, quarterly, semiannual, or yearly premium- this prepayment amount is based on how you plan to pay for the policy.
- Not sure if you should get conditional coverage?
- You are not locked into getting the coverage. If you do not proceed with the policy, the insurance company will refund your money.
- This prepayment shows the company that you are motivated to get the policy.
- But if you are replacing another policy, you may not want to pay for both policies. If there isn’t a coverage lapse waiting until the new policy becomes effective might be more manageable for your budget.
- If needed, set up a Paramedical- this is a mini health assessment where they can come to your home or work.
- These exams consist of a personal medical history interview, check your height and weight, blood pressure, and pulse. Some also require blood and urine samples and may include a resting EKG.
- You need to fast for 4 hours before they do the paramedical in most cases. It’s also advised that prior meals are not overly fatty or contain a lot of alcohol as it may change your health stats, and those results will determine how healthy you are and how much you pay for your policy.
- Typically, these exams take 15-30 minutes
- Once the application and paramedical are in, underwriting can take just a few days or several weeks.
- Any doctors that you have seen will receive a records request. If underwriters have trouble receiving these records, there can be a delay in the process
- When the underwriting is complete, you will receive a final offer or denial of insurance.
- If you get an offer, you can accept, modify, or decline the policy.
- You are not locked into anything, and if the premiums came in higher than expected, you could lower the death benefit to stay within budget.
- If you have accepted the policy, you will sign and date the delivery receipt. Make sure if there are any premiums due that they are paid up. And now you are COVERED.
As with any aspect of your financial life, we recommend speaking to a licensed professional to help you navigate through the options so that you can make the best choice for yourself and your family. Scarlet Oak Financial Services can be reached at 800.871.1219 or contact us here.
Advisory services offered through Capital Asset Advisory Services, LLC, a Registered Investment Advisor. This material has been prepared for informational purposes.