Welcome to the Application Center
Texas and California Residents only – more states coming soon
First, lets talk about the process. Whether you are using a product with Automated Underwriting or Manual Underwriting, the process is essentially the same, but with a few extra steps.
Remember, nothing is final until “Acceptance and Payment”, which is AFTER Underwriting.
You cannot just buy Life Insurance. An Application is not a purchase.
I am ready to book my Application Appointment:
Application Process Overview
You’ll start with an Application, which may take about 30 minutes.
Since you used one of our Life Insurance – Made Clear calculators in the Life Insurance 101 section, you know how much Life insurance “face Value” you need.
Your licensed insurance advisor can answer any clarifying questions for you at Application.
A Life Insurance application is very detailed and your answers will be verified with the best national and state databases the government has available. The Department of Motor Vehicles, Credit reporting agencies and the Medical Information Bureau, just to name a few.
Prepare to answer questions about smoking, drinking, drug use, your medical history, prescriptions you are taking and family medical history, such as a mother or father having cancer or heart attack and other such questions. Recall the City, State and Country you were born in.
Have your Doctors name, address and contact information available in addition to everything you would normally put on applications such as your Social Security Number and Date of Birth.
Even with Automated underwriting your looking at 1 – 3 days before an answer. It will be one of three:
- Go to manual underwriting
We have had Clients get an answer back from Automated underwriting in an hour, but usually the next day.
An “Offer” is very important in the Life Insurance world. Life Insurance is not just a go out and buy it product. You have to be invited to buy it with an Offer. The Offer will detail how much and at what price the insurance carrier is willing to extend. Your Insurance Advisor will explain your Offer to you.
ACCEPTANCE & PAYMENT
Then you sign an acceptance form verifying that you are still healthy from the time of application and pay your first Premium payment if you want to accept the Offer as-is. You may accept LESS than Face Amount or REMOVE Riders, but you cannot add anything.
You will tell your Insurance Advisor at the Offer what you want, so the documents will be prepared for an acceptance as-is.
BIND AND ISSUE
Once both the Acceptance form and Premium payment are received by Home Office in good order, then the Policy is “Bound” and “Issued”.
This next statement is the most important tip ever. Nothing is final until Binding. You have to get your Binder and SAVE it. If someone just gave you a sack of gold worth $500,000- what would you do? Keep it safe I’m sure.
Keep your Policy documents with your Will and other vital financial documents.
These days, it is usually an E-issue, and you will receive a secure document in your e-mail. Of course, many still do request a paper bound copy because you may need to assign the policy, or a part of it, to a bank for an SBA loan or other assignment needs.
If you get an E-issue and need to assign it later, you’ll just have to print it out yourself.
You have a new Asset in your financial portfolio. Put the “Face Amount” on your Balance Sheet. Balance Sheets love all those zeros in Life Insurance Face amounts.
- Acceptance & Payment
- Bind & Issue
Perhaps your Policy is too large for Automated Underwriting or for some reason your application fell out of Automated and needs manual underwriting.
Be prepared, this can take some time. It could be over a month.
Ok, so after you pick yourself up, understand that part of the process is what’s called an “APS”. Attending Physician Statement. Some Doctors just do APS’s once a month… some once a week… it all depends. It’s not a lot of fun for them, even though the insurance company pays them to do it.
Something that is in our control is the “Paramed”. Since this IS something in our control, schedule it when the Paramed calls and get it done.
Also, you may want to cut back on the sugar and sodas a few days before the appointment. The healthier you are, the better “Rating” you are going to get. “Ratings” determine how much you pay for “Face Amount” coverage.
The Paramed in an in-person visit with a medical professional. The Insurance company pays for it too and they will come to your home or office.
If it is very large Policy, you may need to go to a Doctors office. It usually takes about 20 minutes. The Paramed will check your I.D. and get blood and urine samples, height and weight and ask you more medical questions.
After the Paramed, your part is usually done, Now you just wait for all the data to get back to the Underwriter to make a decision. This time it will be one of two answers:
If you get an Offer, you are back at Acceptance and Payment. You can choose to accept less face amount or remove riders, or accept as-is. You just can’t add anything at the Offer.
Tell your Insurance Advisor what you want from the Offer or accept as-is. Continue from “Acceptance & Payment” and then add a new Asset to your Balance Sheet.
Get started today, your Life Insurance Made Clear Advisor will walk you through each step.