Indy Health Insurance Agent
The major reason why persons buy life insurance
coverage is to supplement the finances of their loved ones in the event
of their death. The death benefit is the financial backing which is
provided to the beneficiaries of the insured based on the terms of the
Term life insurance policies are often bought for short term financial security of loved ones. One could buy a term life insurance coverage for a specific period to strategically having money for specific purposes. These purposes could include college or providing enough income for a family until the children are adults. When life insurance coverage is bought because of these purposes, specific premiums are agreed on for the duration of the coverage.
Life insurance coverage can also be bought to fund a new business or buy out the business should one’s business partner die. Irrespective of the purpose life insurance coverage serves, the terms and conditions that apply to the different forms of life insurance are tailored to the purpose and determine one’s access to the associated benefits.
Life Insurance Underwriting - Approval Process
Before insurance policies are offered to a client, insurance companies carry out the process of underwriting to determine the eligibility of the buyer for particular products. In other words, the underwriting process is carried out by insurance companies to determine the best product and rate to offer a particular client. During this process, the insurance companies usually gather specific information about the client which will guide the decision of the most appropriate rate to offer.
Underwriting is a process that applies to life insurance products as well as other insurance and financial products. If a person seeks a mortgage from a bank, for example, the underwriting process will guide the bank on whether to grant the mortgage to the client or deny the application.
Insurance companies require certain bits of information to determine whether a person is eligible for a particular insurance product. The underwriting process thus involves gathering information on the finances as well as the medical history of the applicant. The underwriters would also require information on the travel plans of the applicant as well as their driving records. The occupation and hobbies of the applicant will also be accessed.
The basic documents which the average underwriter would require when applying for life insurance would be a paramedical exam report, a health questionnaire, the motor vehicle report, their prescription medical history as well as their medical information bureau report.
More documents may be required from applicants for extended life insurance as well as applicants that have attained a certain age. These requirements include cognitive testing as well as a financial questionnaire and credit report. An inspection report may also be required.
The underwriting process would determine the rating class of the individual as per the guidelines of the organization. Applicants within a rating class are eligible for similar products and may pay similar premiums.
With a variety of cheap life insurance coverage available, it is important for one to properly understand what each coverage offers before subscribing to it.