Securing a Life Insurance Policy Process
t is imperative for a person who wishes to purchase a life insurance policy to
be aware of the process, which he or she needs to undergo. In general, life insurance
companies follow specific stages before granting a policy. Here we make an attempt to
explain these stages. However, the implementation of these processes is subjective as
it may vary from company to company depending on the nature of each case on hand.
As an applicant, the first stage towards securing the life insurance policy
should be initiated by you. Firstly, you have to calculate your economic situation
and meticulously assess your future financial requirements. You also need to determine
the manner in which you would like to meet your financial goals. You can calculate your
financial requirement using online calculators specifically designed to help you in this
Be careful in choosing a life insurance agent. Make sure that the agent is an
experienced and licensed insurance professional. Based on the assessment and your
requirement, a reliable agent or a website could help you decide how much life
insurance you need. At the end of this stage you should be clear regarding the kind
of life insurance policy you want (example term insurance policy, universal life
insurance policy etc.), the amount you want to buy and which insurance company you
wish to choose.
After you have finalized your decision you can proceed with the application
process. The respective agent or an online life insurance service provider will
assist you in completing the process and fulfilling the requirements of the insurance
company. After you have filled out the application and furnished required information,
the respective company will check your details to assure the insurance companies'
procedures have been accurately followed.
The third stage will include a medical examination. A medical professional will
contact you personally to set this up. The insurance company will look into many
factors during medical examination. The company will collect details regarding your
habits, medical history, occupation, any allergies or aliments etc. In brief, the purpose
of this examination is to know your medical history and future health. Your financial and
medical information is kept secret and adequate privacy is maintained.
In the fourth and final stage the insurance company makes the final decision.
It is at the discretion of the insurance company to approve or disapprove coverage
to all applicants. If your life insurance policy is approved, you will receive the
appropriate documents from your insurance agent or from the online insurance shopping
service with which you applied for insurance. You are the consumer and you have certain
legal rights. Consumer laws in America allow you a time period called as “free-look”
period. During this time period (free-look) you can change your decision by returning
the policy and receive a refund from the insurance company.
Please remember that it is your hard earned money that you are investing while
securing life insurance. Invest in a company that fulfills your careful scrutiny
such as affordability, financial stability, competitive service etc. And remember,
you have the right to ask questions and get them clarified at any point of time.