Fully Underwritten Term Life Insurance - What You Need to Know

Life Insurance

You shop for term life insurance because you want to find the best deal for yourself and your family, correct? Generally, clients I speak with are gathering quotes from 3 different life insurance carriers. They are also looking for information or literature to review and read. While these steps are a great start, you also need to keep in mind that with fully underwritten term life insurance, which involves a mini health check and review of medical records if needed, it can be a lengthy process from the time you apply until the time you are approved.

If you have no term life insurance and are just starting the shopping process, here are 5 points I consider important to keep in mind:

  1. If you are shopping for literature and information, I believe it’s best to go to the insurance carrier’s web site. Many companies today are green (or trying to go green) and want to reduce paper consumption. Life insurance carrier websites have a tremendous amount of information for you to easily review online.
  2. It’s important to understand that depending on how soon or how late you schedule your mini health exam, it will have an impact on the length of the application process time. So, if you schedule your mini health exam within a week of completing the application, it will be just that much sooner for the whole application process to be completed. If you are scheduling something like 3 weeks or more out, now you may be looking at a couple of months before you know if you are approved or not.
  3. The term life insurance applications need to be as accurate as possible, in regards to the information filled in. For example, if you have had any medical situations or hospital stays the insurance carrier will want to know what specific doctor or clinic you went to in case they need to order medical records for your application. If the incorrect information or no information is provided this can delay the application process.
  4. You may be very busy with your daily life schedule but it’s important to review, sign and date the term life insurance application as soon as you can and mail it back. Again, the longer you wait to complete an application means it will take that much longer to get a decision. Carve out sometime to sit down and go through the application, make sure the information is correct and sign, date it and mail back.
  5. Once you have been approved and received your policy packet in the mail there are usually a couple of items you will need to return to the insurance carrier. Perhaps a policy delivery receipt slip which is usually a one page piece of paper saying that you received the policy and wish to move forward. This document you would sign and date. There may be other documents along with you initial payment that the insurance carrier will need before the life insurance policy is considered issued and in-force. Once the insurance carrier receives your initial payment and any documents needed, filled out and signed / dated correctly, then they will put the life insurance in-force and you are covered.

So to summarize, with fully underwritten term life insurance, it can be a lengthy process from the time you do an application to the time a final decision is made. If you don’t have term life insurance make sure you don’t wait too long to sign and date your application, schedule the health check and make sure all of the information on an application is accurate as possible. Save yourself the time and energy of having to search for information and don’t procrastinate with the application paper work. As I always say, none of us know what the future holds! So don’t waste time and leave yourself and your family unprotected.

About the author: Dan Cody has been in the life insurance business for over 7 years. He loves playing a variety of instruments including the guitar, bass, drums, and piano. He also supports cancer research foundations and volunteers at local pet shelters. Dan enjoys helping customers understand life insurance, so they can find a solid policy that fits their needs. You can reach Dan at 1-800-651-1953 or DCody@Pivot.com.