The life insurance application process can be quite a daunting task, especially if you don’t know what to expect. But every step is vital as it helps you get sufficient coverage depending on your specific needs.
We compiled this quick guide to walk you through the entire process and ensure you’re not stuck anywhere.
Compare life insurance quotes
The first step is to compare plans offered by different life insurance companies. You can choose to visit or contact individual insurers or liaise with industry experts like Caspian Insurance, which compares a range of leading providers in the UK.
For the latter option, all you have to do is provide your information, and the automatic quote engine estimates the premium you’re likely to pay. The estimate is usually based on the information you’ve submitted, and it’s not final.
The final rate is dependent on the results of the underwriting process, which we’ll explain in the subsequent steps.
The application process
Supposing you’ve already made up your mind on the policy you’d like to get, what next? For starters, you’ll submit your request, after which a representative will call you over the phone for some examination. Usually, this step will last 20-30 minutes, with most questions revolving around your health and lifestyle.
You’ll then agree on a date for a medical examination if needed. In most cases, you won’t need a medical exam depending on the policy you’re taking out or the information provided during the application.
The medical examination
Most life insurance applicants dread this step probably because they’re worried it will take too long or invade their privacy. But that’s not always the case. Ideally, the exam will last less than an hour and involves regular tests like weight, height, blood pressure, blood, and urine samples. You might also be asked to fill out a simple questionnaire.
The good news is, you don’t have to go to the hospital to perform the medical exam. Most insurers will send a licensed nurse to your home or workplace for this process.
Now let’s take a look at useful tips to help you attain the best possible results from these tests:
- Get it done in the morning.
- Abstain from eating for 4-8 hours before the exam
- Avoid stimulants like caffeine, cigarettes, and alcohol
- Drink 2-3 glasses of water before the test
- Avoid high-cholesterol foods
- Get a good night sleep
- Don’t hide any preexisting health issues
In addition, follow any instructions given to you by the nurse.
The underwriting process
At this point, you’re almost at the finish line. Your provider examines and evaluates the information collected about you. It is on this basis that they accept or reject your application depending on the level of risk that you pose.
If the application is accepted, the underwriter reviews them and determines your health class and the premiums payable. And in case you’re wondering, there are set guidelines that the underwriter must adhere to, so everything is fair and justifiable.
The insurer will then notify you of their decision. If accepted, you will receive a policy plus an offer, which you should also review and take or weigh other options as advised by your broker.
Policy delivery
The final step entails the issuance of a life insurance policy. This happens after the insurer approves your application, and you are content with their terms and conditions. At this point, you’ll need to acknowledge acceptance of the insurer’s offer and also pay the premiums.
Finally, don’t forget to keep a copy of the policy. And that’s it; your plan is now in force!
Conclusion
As simple as these steps may appear, understanding them before applying for life insurance could save you some money. A good example is the medical examination step, where knowing the do’s and don’ts before the test could boost your health score, and consequently lower the premiums.
We hope that this post was an eye-opener for you and will help to simplify your application process when you decide to purchase a life insurance product. Please share your feedback with us in the comments below.
