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.

Things to Consider Before You Buy Your First Life Insurance

Life insurance is one of the most important insurance policies anyone can buy. The benefits are too many, especially if you have dependents. Deciding to purchase a life insurance policy is just the first step. You have to actively ensure you are getting the best. This is one policy you don't want to leave for a mediocre.

Why Do You Need It?

Undoubtedly, life insurance is very useful to anyone with dependents. Before you purchase the policy, you should have a good, personal reason why you need it. You shouldn't just settle for it because everyone is doing it. Do you have mortgage you would not want to burden your love ones? Truly ask yourself what exactly you hope to achieve with the life insurance.

How Much Coverage Do You Really Need?

What you are going to determine is what is called a death benefit in the insurance circle. This is the amount of money your dependents will get when you pass away. This is not some random estimate. There's usually an online tool you could use or just visit a professional life insurance experts - like those in Greater National Group.

What Type of Life Insurance Do You Want?

There are basically two types of life insurance policy - Term and Permanent insurance policy. Get to know what each of them entails and the benefits and premium offered for both. Learn insurance terminologies as well to ensure you understand the basics of insurance.

The Experience Level of the Insurance Company

This is your first time purchasing life insurance. This means you don't have the luxury to settle for a half-baked insurer. Take time out to research the company's experience and reputation. They should have paid client's death benefits without much hassle.

Life Insurance for those in the Military

Unlike many of us that would need to actively purchase a life insurance, military personnel naturally enjoy a well-planned out life insurance policy. These usually include death gratuity, financial counselling, bereavement support, and a lifelong survivor benefits. All these are out in place to ensure the family and relations of military personnel are well taken care of after their death.

In the case where a death occurs for personnel in the US, the beneficiaries are allowed to choose between two options; claim a lump sum or 36 equal monthly installments. According to reports, many beneficiaries opt for the lump sum payment. This allows them to quickly move on past the grieving stage and look more towards the future.

Death gratuity is also included in the package and the military have systems in place to ensure that payment is claimed smoothly. Using the military as a good example, life insurance is surely a better way to care for love ones even while you are not alive. For military personnel, the premiums are taken from their salary in such a way that it doesn’t necessarily affect them.