After your interview is completed, your exam is done, your medical records come in and you’re approved for a policy, the carrier will send out your official life insurance policy along with all of the paperwork you need to complete in order to place it inforce. This is easily the most intimidating step in the application process, but if you know what you’re signing, it becomes a lot easier to see through the contract’s language and understand what you’re signing off on.
When you look for life insurance with us here at Quotacy, we try to make your life as easy as possible by giving you a checklist for everything you need to complete and return in order to finalize your policy. We also mark any lines where you need to sign, and separate the required forms from the rest of your policy. Anything you need to complete, we put inside a handy return envelope you can use to return the forms to us when you’re done.
This form is just what it sounds like – it’s a document that you need to fill out and return to the carrier to let them know that, yes, you did receive your policy. The Delivery Receipt of a policy is meant to show that every major player (often whoever is being insured and the policy’s owner, if they’re not the same person) has had a chance to look everything over to make sure the policy is meeting their needs effectively.
A typical delivery receipt asks for four pieces of information.
- The printed name and signature of the person being insured (either called the Insured or Proposed Insured on application paperwork).
- The signature of the policy’s owner, if it’s different from the proposed insured.
- Your Delivery Date, or the date when your policy arrived at your door.
- Your “Policy Date,” or confirmation that you’d like your policy date changed to the date of delivery.
That last one can actually be a little tricky. Depending on your birthday and when you’re applying, your Policy Date can affect your pricing because of the way the carrier sees your age and calculates your price. If you aren’t sure whether or not you’re “saving age” on your policy, check with your agent before signing off on anything to see whether changing your policy date will affect your price or result in more paperwork for you.
Bank Draft Form
The Bank Draft Form is the piece of paperwork that the carrier uses to collect your bank information so they can process automatic monthly payments or one-time withdrawals from your accounts. Some carriers call this an EFT (Electronic Funds Transfer) form, but they both serve the same purpose.
If you’re planning on making automatic monthly payments, the form will often ask you to specify what day each month you’d like to have the charge withdrawn from your account, and how much they’re authorized to pull from your account each month to meet your recurring payments.
On a bank draft form, you’ll need to fill out:
- Your bank account information.
- Information about your ongoing payment plan (how much per month, when each month the charge will occur, etc.) if you’re paying monthly.
- Information on any one-time payments you’ll use to pay your initial premium.
- Your signature and the signature of any other account holders.
Initial Premium Payment
In order to begin your coverage, the carrier needs the initial premium payment – after all, you can’t get anything without paying for it. Depending on whether or not you’re saving age, you may need to pay multiple months’ worth of premium for the first payment.
This premium payment can either be completed via a check mailed back to us, or by using the Bank Draft form included with your policy to complete the first payment electronically. Our cover letter will tell you how many months’ worth of premium are due to begin your coverage, and the total price to be withdrawn.
Finally, you need to sign the application paperwork itself. Since you’re applying online with Quotacy, a lot of pieces of paperwork that would normally have been completed throughout the application process is compiled here for you to look over and sign off on. Depending on your carrier, the application paperwork you need to complete could be called things like “Application Part D,” or the “Underwriting Supplement,” or a “Health Statement.”
All of these forms are simply asking you to confirm the information that you’ve already provided during the application process with your signature. Since insurance laws differ from state to state, these forms will often also require you to re-confirm the city and state where you’re applying from as well. These application documents may also have areas for your agent to sign as well, which we take care of when you send back your documents and they arrive in our office.
On the rest of your application paperwork, you’ll need to fill out:
- A few signatures and your printed name.
- The city and state you’re applying in.
- Depending on what else the carrier needs, there may be additional forms for you to fill out during this step.
The bottom line: with Quotacy, signing contracts doesn’t have to be scary! If you’d like clarification on any part of your delivery documents, just get in touch with us, and your agent will be able to answer any questions and walk you through what needs to be done in more detail.
About the writer
Eric started in Quotacy's sales department, but moved to marketing after helping hundreds of people through their life insurance buying journey. Aside from writing about buying life insurance, he also edits Quotacy's monthly newsletter, runs our YouTube channel and produces Real Life, our podcast. Eric lives in Minneapolis, where his coworkers are trying to convince him to take his humor into the spotlight. Connect with him on LinkedIn.