I’m going to make this life insurance application process seem a bit lengthy and cumbersome in explaining it, but be assured right up front that the process is neither of those if you just take some of these suggestions to heart and work right through it.
In Part One I covered one of the most critical parts of the process, finding the right agent. I insinuated that it is more important for people with physical or mental impairments to make sure they have an experienced agent, but the truth is that even the young and the healthy need prudent, experienced advice and the best rate available to them. Going through one of the mega on line agencies will get neither of those for you. So, all of you having taken a half hour of your time to find an agent that has the experience you need, the next step is to contact them and get a quote.
This should start with a medical and personal history interview with your new agent. They should ask about past and present medical information, family history, hobbies, travel and your occupation. They should ask about medications and then dig for more detail to any yes answers. This shouldn’t take much more than 10-15 minutes even with the extra detail so you won’t need to bring a change of clothes. If, after getting most of the detail the agent asks you for information that you don’t know off the top of your head, such as the hbA1c reading for someone with diabetes, or the viral load for someone with Hepatitis C, be prepared to do some homework. A call to your doctor to get a copy of labs or a pathology report is going to help your agent get the most realistic quote possible. The most realistic quote possible should be yours and your agent’s goal. No surprises after underwriting. If your quote going is is $100, you want it to be $100 after underwriting and guaranteed to stay $100 for the length of time you need it.
If your agent has to shop your case it may take a few days. Shopping a case needs to happen any time your health falls outside normal parameters of life insurance underwriting. If you tell an agent you have diabetes or tell them you had a 3 vessel bypass four years ago and they just quote the case without shopping it to a number of companies you are likely to end up paying more for what you get or you may get declined. Shopping a case helps agents, even very experienced agents, to know the right company to process your application in order to achieve the best possible results for you. Shopping a case does away with surprises after the underwriting is done.
So, you have your quote. Does it work in your budget? That should be priority one since busting your budget will more than likely end up with life insurance lapsing which won’t help your family out at all. Ask the agent to explain to and even show you why they are recommending the quote they give. Ask about the company and the policy. Has the company changed from term life insurance to term/ul recently? If so, have the agent explain why and explain the difference in the products. If it is a term policy what is the language of the conversion option? Does it sound solid for the long term?
Bottom line. You now have your agent and he or she has proven themselves by shopping for and securing the best tentative offer for you. Next up the application and exam. Much easier than what you’ve done so far. If you have any questions or have concerns about how your agent determined your quotes, call or email me directly. My name is Ed Hinerman. Let’s talk.