Thursday, 25 August 2016

Stages of Information Gathering in Life Insurance

Buying life insurance is one of the smartest decisions you will make in your life. As remarkable as this may seem, some people often complain that the underwriting period is just too long to wait. In this article we will be looking at the stages to get an underwriting. On average, it takes about 4 to 8 weeks to finish this process. Here's a closer look at what the stages entails.

Week 1 to 2

This is the stage that focuses on completing the medical examination. For some people it could take a couple of days, while it could take up to a week for others.

Application Processing

This usually takes about a week. During this period, the insurancecompany will review your application to see if you are eligible for their policy. If you meet the requirements, you will be expected to proceed to the medical examination stage.

Medical examination

This stage takes between 2 weeks to a month. In this stage the insurance company will obtain your medical examination records and review them.

Application Review and Decision

At this stage the insurance company would have gathered all necessary information about you. With these information, they will be able to rate you into the premium package you belong. This is why premium rates tend to differ from one individual to another. The higher the level of perceived risk to the insurer, the higher the premium will be.

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