The first step will be to complete a written application. This is necessary whether you apply through an advisor or directly to the company. There are two newer methods at the time of the writing of this book. The first is called tele-underwriting, where you are asked all the questions over the phone and then you sign an application at a later time. The second is similar; with this method the application is done over the Internet, additional questions are asked over the telephone, and then the paperwork (including an application) are signed when the policy is delivered. These methods are designed to reduce the processing time of applying for life insurance, which can take several weeks under the traditional method. An application is a form with a series of questions that will include your identification information (address, phone number, drivers license, etc.), personal financial information, medical questions and avocation questionnaires (where appropriate). Avocations are hobbies, such as rock climbing, scuba diving, etc.
After completing the application, the process may involve some or all of the following and possibly other requirements depending on the company:
- Para-med Exam, Full Medical Exam, Blood Test, Urine Test, EKG, etc. – these will depend on the age of the applicant and the amount. Exams are paid for by the insurance companies and can be done at an applicant’s home or office.
- Phone Interview
- Attending Physician Statements (Medical Records) – The Insurance Company will request and pay the required fee.
- Financial Underwriting- may include a form and/or documentation such as tax forms, profit-loss statements, etc – as applicable