November 8, 2016

Term Life Process

What is the process to purchase Term Life Insurance?  What are the steps necessary to procure term?

How can I speed up the Term Life Process?  What should I do not?

Buying Term Life Insurance:

The process to purchase level term life insurance has never been simpler.   There are just so many places to purchase Term Life these days that the choices can just be overwhelming.  Online, Over the Phone, In Person, Via Email or Chat, or in a Financial Super Center, which is also a version of in person.   However just because the term life process is easy does not necessarily mean that it these are the best methods of purchasing life insurance.

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The Term Life Process is all about the Class:

Life Insurance is offered in “Classes” or Levels.  Each Class or Level represents an increased risk and hence an increased price.   This is why it can be best to speak with an independent agent. It is important, when having your initial life insurance discussion with your insurance agent to lay out all of the information that you know of so that your agent can correctly quote out a term life insurance policy for you.   For example, if you say you don’t smoke, but you do, the life insurance offer that you receive will end up being much more expensive.

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How Exactly Do People Purchase Term Life Insurance from Marindependent?

Loosely laid out, this is the full process:

1.  Client contacts Marindependent with an interest in life insurance.
2.  We contact the client for an initial discussion of their profile.   Typically we review: Height / Weight, Personal Health History, Parent and Sibling Health History, Driving Record, Client Career and possibly any dangerous avocations.  Dangerous avocations are hobbies such as scuba diving, cliff jumping, etc.   We will review some simple financial numbers.  We will also have a simple discussion of the face value, length, and type of insurances desired.   Lastly we will discuss and review the process, just so that we are all on the same page.   Sometimes this step finishes with a completed simple application for insurance, sometimes we have a second or either a third meeting to review some of these options.
3.  Once the completed Initial Application is done, a follow up call is received to complete the Full Insurers Application.  This will go into far more details based off of your health history.  You should have all of your doctors information with you at this time, including their address, full names, last time visited, medications prescribed, diagnosis, etc.  Keep in mind that they will want all doctors, not just your primary care physician.
4.  You will then sign the application, usually electronically or via email.
5.  A medical “paramed” visit may need to be scheduled based on underwriting criteria, the insured, the insurance company, and the face amount of life insurance.   This will be scheduled at a time and location that is convenient for you.  It can be in your office or your home.   At this appointment they will weight and measure you.  They will take your blood pressure.  The paramed will take blood and urine specimens.  What are the checking for?  Lots of things, really.  The insurance company wants to confirm that you have not had nicotine, they check your cholesterol numbers, and obviously they check for illegal drugs.
6.   Now all of this information goes off to the Life Insurance underwriters who review it.  They may contact your doctors and wait for reports to come back.   They package all of this up and after several weeks, hopefully, send you an offer of life insurance.
7.   Lastly the life insurance company will choose to offer you a term life insurance product.

Is that the guaranteed process for everyone?  Of course not, things happen and sometimes the process can be longer than this.  Sometimes the several weeks can become much longer, if things get delayed.   For lower dollar term amounts, a paramed visit may not be needed.  For others, guaranteed issue life insurance, which often does not require nearly as much underwriting, but costs more, can go super fast.

How can you Help the Process go as Fast as Possible?

Its very simple for consumers to assist in making the life insurance application go as fast as possible.  First off, read and understand the process.   When the Life Insurance Follow up team calls you, speak with them immediately.  To not wait to sign the life insurance application.  Review it and if anything is wrong, get it changed ASAP.   Schedule the paramed for the same week.  In a nut shell – cooperate.   Even with all your cooperation though, the process can still become delayed.

How does an Independent Life Agent Help you Get the Lowest Life Insurance Price?

We all know that just about anyone with a keyboard can pull up life insurance quotes, right?  Well the underwriting of life insurance is all about details and those details will determine which class of term life insurance your qualify for.   For example if your cholesterol ratio is 5.2 it may be qualify you for a Middle Class with a A+ rated carrier or a Best Class with another A+ carrier.   The price difference between those carriers could be dramatic.

Are Face to Face Meeting Still Done with the Insurance Agent?

Face to face life insurance meetings were the way that life insurance has been sold for decades.  However, times have changed.  Although on occasion, we can still meet in person, in general it is rarely done.   Why?  Without spending too much explaining, lets just say that Cash Value Life Insurance plans, such as whole and universal life, which pay out very large commissions are generally not considered a best practice purchase anymore.  Yes, there are times and circumstances when Whole Life can make sense.  However, term, which is much lower cost product and hence a lower commissioned product requires that production costs be cut as well.  The simplest way to accomplish this is via phone and web selling.

Now What?

Simple, since you have come this far, the best place to start is either by getting a quote online on our life insurance rater or contact us at: sales@marindependent.com with a request for a meeting.   Believe it or not, reading about life insurance is almost as complicated as applying for it.  You know you need term life insurance, What Are you Waiting For?

Additional Resources:

If you are looking for a more details about Term Life Insurance, the history, the types, riders, you may consider using this great life insurance resource: Everything You Need to Know about Term Life.

About Marindependent Insurance Services LLC:

A California Boutique Insurance Agency that focuses on caring for their clients with individual attention.  Based in Marin County California.  License Number: 0K10734 .

Disclosure:

Please read our full set of disclosures.  Reading about Term Life Insurance is no substitute for speaking with a license insurance agent in your jurisdiction.