What is the process to obtaining life insurance?
[social_share]Although the first time that a person applies for life insurance can prove to be daunting, it can be relatively straightforward if the applicant realises that there are a number of steps to the process.
The first step is to request a quotation for insurance. This can be done through a broker, who will usually either take a fee for the task or be paid through commission if the applicant successfully obtains insurance through their services. Often it will be done directly, although in this case it is a good idea to get a number of quotes rather than simply accept the first one.
There will be a questionnaire to complete, and this is usually sent out when a person requests the quotation from the life insurance company. Although the questionnaire can often be very long, it is essential that this is replied to honestly and in full. If it is not completed properly it will often result in a higher quote. If it is filled in with dishonest answers the life insurance will be voided, despite the fact that premiums might already have been paid.
There may then be a medical examination to be carried out by the insurance company’s doctor. This will often be paid for by the applicant.
Following the examination there will be a quotation, provided by the life insurance company. When an applicant decides which quote to take then they will need to reply positively to the company.
Following that will be a proposal, along with relevant documentation, that will be forwarded to the applicant. Some of this will need to be kept by the applicant while at the same time some will be needed to be completed, signed and returned to the life insurance company.
The life insurance will then be assessed by the underwriter who will decide whether they can approve the life insurance coverage. There may be some more questions asked at this stage and there may also be conditions that are added to the proposal, which may be accompanied by advice from either the life insurance broker or agent.
If the life insurance is still accepted then the documents, including the policy will be sent out to the life insurance applicant and their life will be insured from the start date of the policy.
