What to Expect From the Life Insurance Application Process

We’ve spent the last few weeks educating you on the life insurance underwriting and paramedical exam process. But, what about the steps leading up to the medical exam? What can you expect from the application process and how long does it all take? Today, we’ll review each step in detail, hopefully preparing you for what lies ahead.

Step 1: Compare Quotes

Once you’ve spoken with an insurance agent and identified how much coverage you need, it’s time to start comparing quotes. Your goal is to identify the most financially secure company with the most affordable rate. While many quotes can be obtained online, it’s often time-consuming and overwhelming. Working with an independent agent is the easiest and most efficient way to comparison shop.

Tip: Don’t base your final decision on price alone. Only consider insurers who are rated A- or higher by A.M Best. Hopefully, your loved ones won’t need to cash in on that insurance policy for many years to come; you need a company that will still be around in 30 – 40 years.

Step 2: Application

Now that you’ve selected the policy that best fits your needs, it’s time to fill out the paper application. This is usually a fairly simple and quick process, lasting for 10 to 30 minutes.

You’ll be asked some basic information regarding:

  • Your health history
  • Family’s health history
  • Prescription medications you’re taking
  • Criminal and driving record
  • Dangerous hobbies you participate in

You’ll also want to come prepared with the following information:

  • Beneficiary information, including social security number and date of birth
  • Contingent beneficiary information
  • Your social security and drivers license number
  • Latest tax return income information
  • Your primary doctor’s contact information

Tip: Lying on an insurance application is considered fraud and could result in some serious penalties. Don’t offer any information that isn’t asked, but never lie.

Step 3: Paramedical Exam

Once your application has been submitted, a medical technician will contact you to set up your paramedical exam. You’ll be asked for additional information regarding your health and the nurse will check your weight, height, and blood pressure. They’ll also take urine and blood samples. This process should take between 15 and 30 minutes, depending upon the specifics of the policy you’ve applied for.

Tip: If you’re concerned about the medical exam, our blog goes into greater detail on what to expect and what steps you can take to better prepare yourself.

Step 4: Phone Interview

Some insurance companies require applicants to undergo a phone interview. This is a fairly painless and speedy step; plan on spending 15 to 20 minutes on the phone.

Tip: Again, don’t volunteer information that’s not asked of you. Answer the questions honestly and briefly.

Step 5: Underwriting

Once you’ve completed these steps, all the information that’s collected is forwarded to the underwriter. While this is typically the longest part of the process, it doesn’t require any action on your part. The underwriter will review the details of your application, medical, and personal history and assign you a health/rate class.

Tip: This can take anywhere from 3 – 6 weeks, sometimes longer if they have to request medical records from your doctor. It doesn’t mean there’s anything wrong or that you’ll be denied, so don’t start thinking the worst.

Step 6: The Decision

Once the underwriter has had an opportunity to review your information, the company will come back with a decision. Hopefully, your policy will be accepted at the rate you applied for. If it comes back “other than applied,” it can mean one of two things – you either qualified for a lower rate, or a higher rate.

Tip: If it comes back at a higher rate, discuss your options with your insurance agent. Some applicants choose to reduce their coverage amount or drop the policy term, while others opt to go with another carrier entirely.

Step 7: The Policy Takes Effect

Upon making your decision, notify your agent or the insurance company. Your policy will then be processed and forwarded to you for review. Once your signed policy and first premium payment have been received, the policy is officially in force.

Tip: Inquire about using a conditional binding receipt, which would put your policy in force immediately. Additionally, make sure you notify the beneficiaries that they’ve been named on your policy.

If your worst fears come true and you’re denied coverage, schedule a meeting with your agent to discuss your options moving forward. Don’t make the assumption that you’ll be denied with another carrier, as each company has their own set of underwriting guidelines. Many even offer policies that do not require a medical exam for a slightly higher policy premium.

Paramedical Exam Tips to Help Achieve the Best Life Insurance Rating

Last week, we walked you through the life insurance paramedical exam process and answered some of the most frequently asked questions. Now that you know what to expect, we thought it would be helpful to share some tips to help ensure the best possible outcome. While you can’t control how chronic illness impacts the underwriting process, there are ways you can prepare to keep your rates affordable.

Here are some basic tips to help you prepare for the paramedical exam to ensure the best results:

1) Watch Your Diet Carefully

A week before your paramedical exam, pay close attention to the foods you consume. Since elevated blood pressure and cholesterol levels are the primary reason life insurance underwriters come back with an offer for a lower rate class, it’s important to control these numbers as much as possible. Reduce or eliminate your sodium intake, as it can elevate your blood pressure. Cut back on your sugar consumption, as it has the potential to increase your blood sugar levels. Avoid processed foods as much as possible, as these are typically high in sugar, fats, and sodium.

Instead, focus on foods that can positively impact your blood work. Leafy greens, such as kale, spinach, broccoli, and salads work to lower your cholesterol and blood pressure. Avocados, apples, oranges, olive oil, peanut butter, oats, orange juice, and fish are great options for raising your HDL (good cholesterol) level. While the underwriter reviewing your application will consider both your total cholesterol and your HDL ratio, they’ll offer some leniency on your total cholesterol IF your HDL ratio is excellent. Thus, focusing on improving your good cholesterol could help save you a lot of money in the long run.

2) Drink as Much Water as Possible

I’m sure, by now, you’ve heard the benefits of drinking water. This is not the time to slack on your water consumption. It will clean out your digestive system and urinary tracts, as well as increase blood flow. Additionally, drinking plenty of water ensures full veins, which makes it easier for the medical examiner to find a healthy vein to draw blood from.

3) Avoid Alcohol and Exercise Leading Up to the Exam

Elevated alcohol levels in your bloodstream could send a signal to the underwriter that you might have an issue with alcoholism. To avoid this, do not consume alcohol for at least 24 hours before the exam. If weight is a concern for you, consider eliminating alcohol for an entire week before the exam. This should help stabilize your weight going into the exam.

Normally, daily exercise is something we all strive for. It’s important to remember, however, that exercise can potentially elevate your blood pressure and protein levels in your urine. Twenty four hours before the exam, take some time to relax and shelf your exercise regimen. Once the exam is over, you can go back to your regular workouts.

4) Fast for at Least 12 Hours

When setting up your paramedical exam, the nurse will likely instruct you to fast for 8-12 hours. Doing so helps avoid false positives on your blood sugar and blood pressure levels, which can significantly impact your life insurance rates. If you’re concerned about fasting for that long, schedule your appointment for first thing in the morning. Once you’ve finished your exam, you can have that cup of coffee and bagel and get on with the rest of your day.

5) Advice for the Morning of the Exam

  • Drink a glass of water the morning of the exam. This will not only help you get through providing a urine specimen, it will also help hydrate your veins, making it easier for the examiner to draw blood.
  • For many, the very idea of having blood drawn can elevate their blood pressure. If you’re feeling a little anxious, ask the examiner to draw your blood first and check your blood pressure last. The time in between these two events is typically enough to let your anxiety subside and lower your blood pressure.
  • When it’s time to get your blood drawn, keep your arm straight and your elbow locked. This allows your veins to pop out, ready for the needle, and reduces any pain you might experience.
  • Wear light clothing and stand tall. It sounds crazy, but sometimes the difference between one rate class and another is a pound or two. By standing tall and dressing light, the examiner will get an accurate reading of your weight-to-height ratio.

If you’re still concerned about the findings on your medical exam, share your worries with your agent. They can match you with an insurance company that won’t penalize you as heavily or set you up with a policy that doesn’t require a medical exam.

Once you’ve completed your paramedical exam, it’s time for the rest of the process. Visit our blog next week as we prepare you for what to expect throughout the application process.

Preparing for a Life Insurance Medical Exam? Find Out What to Expect

While it’s possible to secure a life insurance policy without a paramedical exam, there are some instances where one could be required. If you’ve never had one before, you probably have some questions, and even a little anxiety.

Today, we’re going to walk you through the process and provide answers to some of the most commonly asked questions. Hopefully we can put your mind at ease. Worrying about the exam only puts undue stress on your body, potentially harming your exam results.

Scheduling Your Paramedical Exam

Once your life insurance application has been received, a licensed medical professional will contact you to schedule the exam. They’ll come to either your home or office, whichever is most convenient for you. The average exam lasts 15-30 minutes.

An important tip to remember – The examiner will be taking several vials of blood, so you’ll need to fast for at least 8 hours leading up to the exam. If possible, schedule your appointment for first thing in the morning. When you wake, your fasting will be complete and you’ll be ready to take the exam. It’s ok to drink a glass of water that morning, but wait until after the tests are complete before eating breakfast and drinking your morning coffee.

Stages of the Life Insurance Medical Exam

The medical exam will be broken down into two steps:

A medical questionnaire, where the examiner will ask you a series of questions about your health.

A physical exam, where the medical professional will draw blood and collect a urine sample. He/she will also record some basic measurements, including your height and weight, blood pressure, and pulse.

If you’re applying for a face amount or are 60 years of age or older, the insurance company may require an EKG. When scheduling your appointment, ask the technician if this will be required of you. If so, plan on the exam taking 30-45 minutes.

Depending upon the findings on your application and medical questionnaire, further checks into your personal history may be required. If you have a history of drug or alcohol abuse, a criminal record, or engage in any dangerous hobbies, be prepared to provide additional details. Remember, the purpose of this exam is to determine eligibility AND rate class. So don’t assume, just because you jump out of planes on the weekend, you’ll be denied coverage.

An important tip to remember – To verify your identity, the examiner will ask to see your driver’s license. So, make sure you have it easily accessible before getting started.

What Happens Now?

Upon leaving the exam, the medical professional will submit your lab work for processing. Samples will be screened and the results will be sent to the underwriter for consideration. If necessary, underwriting may request additional medical records from your private physician. After a thorough review, the life insurance company will assign you a rate class, which is what determines your premium amount. Should you accept their policy offer, a policy will be sent to for you to review.

An important tip to remember – Within 7-14 days, your lab results will be completed. Be sure to ask for a copy of the results for personal review.

Frequently Asked Questions Regarding a Life Insurance Medical Exam

What is the insurance company testing for? Blood and urine samples are collected to test for irregularities in your:

  1. Heart and Arteries
  2. Kidney and Bladder
  3. Liver
  4. Pancreas

Additionally, they’re looking for traces of Cotinine, the main byproduct of nicotine, which can remain in your system for up to 3 months and Serum HIV, the virus that causes AIDS.

How much does my paramedical exam cost? Your exam is part of the life insurance underwriting process. The company absorbs all of the cost. And don’t forget to ask for your free copy of the results!

What if I believe the results are inaccurate? If you feel some of the results are off, contact your agent. They can contact the insurer to see if they’ll accept a second medical exam. If the results of the second exam offer different information, the underwriter will consider both when determining your rating.

If I die before the results are in, will the beneficiary receive payment? There’s no set rule for this scenario. Generally speaking, if underwriting comes back that you would have been accepted, the beneficiary would receive the death benefit. For more detailed information, consult with your agent. They can help you understand the intricacies of the policy you’ve applied for.

Once I’ve applied and taken the medical exam, am I obligated to purchase the policy?No, you’re not obligated to purchase the policy, even after you’ve taken the exam. In fact, if you’re considering another carrier, you can even avoid a second exam by sharing a copy of the results with them. They just require that the paramedical exam was taken in the last 6 months.

As you can see, the life insurance paramedical exam is a fairly quick and painless process. If you’re still concerned about the exam, there are No Medical Term Life Insurance policies available. Because the insurance company collects limited health information from you for these policies, the premiums are typically quite a bit higher.

Stay tuned next week, as we offer some tips on how to prepare for your life insurance paramedical exam.

Busted: Top 10 Life Insurance Myths

For many, the subject of life insurance is uncomfortable. Let’s face it, no one really enjoys facing the idea that they could leave their family before they’re ready. Believe me, I understand. I’d be willing to bet, however, that you’d do just about anything to protect your loved ones.

When it comes to ensuring your family’s financial future, it’s vital that you take the time to separate fact from myth. To help you on your quest for the truth, we’re here to debunk the 10 most common myths about life insurance. Armed with the facts, you can make an informed decision, ensuring your loved ones are financially set should something happen to you.

Myth #1: Smokers can't get life insurance

While smoking is one of several factors that will determine your rate class, it is seldom the exclusive cause for denial. However, since non-smokers are typically given a better premium rate, smokers are encouraged to quit before applying for a policy. Most insurance companies require at least a year smoke-free before qualifying you for a non-smoker’s rate.

Myth #2: I'm single, or newly married with no children – I don't need a life insurance policy

When we think of life insurance, we often picture middle-aged couples with young children in the home. While life insurance is more critical for individuals with dependents, that doesn’t mean they’re the only ones to benefit. Remember – the younger and healthier you are, the lower the premium. So, planning early not only ensures your loved ones are able to pay off any outstanding debts you owe, it also locks in your premium at the lowest rate possible.

Myth #3: Life insurance is too expensive

According to a recent study, 64% of polled consumers are unaware of the actual cost of life insurance, believing it’s 3 times more expensive than it really is. The truth – while there are expensive policies available, life insurance doesn’t have to destroy your budget. Start out with an affordable policy, and purchase additional coverage as your needs and financial situation evolve.

Myth #4: I’m overweight; I’ll never qualify for a policy

To qualify for a life insurance policy, you will be required to answer some questions about your physical and mental health, including how much you weigh. While obesity will likely result in a higher rate class, it doesn’t necessarily disqualify you from a policy. If you’re concerned, open up a dialogue with your agent; they’ll be able to recommend the best policy for your unique situation.

Myth #5: I'm a stay-at-home parent with no income coming in; I don't need life insurance

Whether you're a stay-at-home parent or the primary breadwinner, life insurance is still an important component in planning for your family’s future. Consider all that you do for your family, day-in-and-day-out. If something were to happen to you, how much would it cost to replace those services annually? Life insurance could help cover these expenses, ensuring the household runs smoothly after you’re gone.

Myth #6: Buying a term policy and investing the rest is always the best option

While this is a great option for some families, it’s not for everyone. There are a number of factors to consider when deciding between term and permanent insurance. Your agent can help identify which type of policy will best meet your family’s needs, both now and into the future.

Myth #7: My employer provides me with a life insurance policy; that’s all I need

Many consumers are under the impression they can take their employer-offered life policy with them when they leave or are laid off. Unfortunately, this policy is non-transferrable, leaving you with no life insurance protection. Additionally, these policies are typically limited in coverage, with barely enough to cover funeral expenses.

Myth #8: The face value of my policy should be twice my annual salary

While there are a few formulas you can use to determine how much coverage you need, there’s no set rule that applies to everyone. Careful consideration of your family’s financial situation is necessary to determine the amount of insurance that should be purchased.

Myth #9: If I purchase a term life insurance policy, I’m stuck with it for life

Many term policies offer the option to convert to a permanent policy at a later date. When reviewing options with your agent, ask about the available riders for each policy you’re considering; and be sure you understand the terms of conversion upfront, as most policies require term conversion within a specified period of time.

Myth #10 My life insurance death benefit is only payable upon my death  

As mentioned above, most policies offer rider options for an additional premium. One rider, called the “Acceleration of Death Benefit Rider,” allows insureds access to the policy’s death benefit under certain circumstances. Qualifying injuries and illnesses vary from policy to policy, so be sure to ask your agent for details on the policies you’re considering.

Are you considering life insurance, but feeling hesitant? What’s holding you back? Please share your reservations below; who knows, maybe we can “bust” another popular myth.