Life Insurance Underwriting Process

The life insurance underwriting process can be quite challenging especially if you are unfamiliar with the specific language of insurance documents. However if you follow a few simple instructions and take the process step by step there is no reason you shouldn’t get your application approved in a timely manner. The most important thing that you must keep in mind when dealing with this process is honesty. Although insurance rates vary from an individual to another, nowadays anyone can benefit from life insurance as long as he is a responsible person.

When insurances first appeared they usually only applied to safe situations which concerned healthy individuals. However nowadays even people who suffer from serious conditions such as diabetes can be illegible for an insurance. And if you think that insurances only hold benefits for young adults you couldn’t be more wrong as it is not uncommon for a 70 years old person to buy a life insurance. However in order to be considered illegible you must prove that you can control your health. Although sick and elderly people present more risks if they provide valid documentation that they take as much care of themselves as possible they too will benefit from a life insurance.

The first step of the life insurance underwriting process is writing an application. The application can contain a lot of standard questions as well as personal inquiries regarding the individual’s health and financial situation. Based on this information the insurance company determines whether or not you are a risky candidate. Furthermore the life insurance quotes are also determined depending on the level of risk that a person presents. If you are compelled to lie in your application keep in mind that if your lie was to be discovered at a certain point, your beneficiaries will not receive any insurance money. Once you submit the application, the insurance company will analyze it and make you an offer.

Another part of the life insurance underwriting process consists of medical exams. While this is not a mandatory phase for all insurance companies, taking a medical exam might actually be in your best interest. There are a lot of companies that give immediate approval to all applicants without asking them to undergo any medical exams. However these companies have very high premiums and their policies often include some unfavorable conditions. For example it is not uncommon for a company to refuse the payment of the benefits if the insurer dies in less than two years after buying the insurance. So if you are a healthy person the best thing to do is make the time and take a medical exam. Once you have all your documents in order and you have agreed on a policy the only thing left is naming your beneficiaries and signing the contract.