When you apply for life insurance, there are quite a few steps involved from start to finish. The good news is, Quotacy has made this process much easier with the use of technology and our proprietary paperless systems, but there are still steps in the buying cycle that even great design and innovative thinking cannot get around. Life insurance is one of the most important purchases a person can make, so it’s important to understand that making sure you get the best policy for your individual situation can take a little bit of time.
At Quotacy, getting a term life insurance quote only takes 30 seconds, and filling out and completing the pre-application only takes a few minutes. After you submit this pre-application is when we really start getting into the nuts and bolts of processing your life insurance.
After you submit your pre-app, Quotacy reviews it to make sure you are matched with the best life insurance carrier. You are always in control of who you wish to purchase your insurance from, however, there are carriers who favor certain health and lifestyle factors over others.
For example, if in your pre-application you mention that you like to scuba dive on the weekends but chose to apply with a company that, we know from experience, tends to frown upon this hobby and may increase your risk class from a pricing perspective, we will suggest an alternative life insurance carrier who may be more lenient.
Once the carrier you want to apply to is confirmed, we will send you a short EasyApp intake form to gather a few additional things, like the best time to call you and who you want your beneficiary to be. Most of the companies we work with offer an EasyApp, but in rare cases we may have to complete a traditional application for certain states and coverage amounts.
Reviewing your pre-app, completing a full application, and sending it off to the life insurance carrier typically takes 1-3 days.
Verification Call and Medical Exam
After you complete your EasyApp intake form and it’s returned to Quotacy, we submit your formal application to the insurance company. Within 24 hours of your formal application being in the carrier’s system one of their representatives will call to verify application information and set up a medical exam. The medical examiners will come to your home or office at a day and time that is convenient for you. For more information on what to expect during your life insurance medical exam, take a look at our medical exam blog articles.
Your medical exam samples will be tested and the results will be submitted to the life insurance company. Their underwriting team will review the results and determine if medical records need to be ordered.
The verification call and exam typically takes a week to complete, depending on when you scheduled the exam for and how responsive you are to their incoming phone calls. If medical records need to be ordered, this can take anywhere between 1 week and 60 days depending on how fast your doctor’s office is at sending in the requested medical files. If it seems to be taking quite some time to receive your records, we’ll reach out to you and suggest calling your doctor’s office to expedite delivery. By no means are you required to do so, but we often see doctor’s offices speed the process along when they hear from their client in addition to the insurance company.
Final Review and Decision
The process in which the life insurance company reviews your full application, exam results, and (if required) your medical records is called underwriting. The average underwriting process takes about 3-4 weeks. It’s important to note that any hiccups in your application, such as history of bankruptcy, DUI history, etc. can add more time to the underwriting process because credit reports and/or driving history records will need to be pulled.
Once the life insurance company has reviewed everything they will approve, post-pone, or decline your application for life insurance. We will notify you immediately of their decision and explain your options.
Once you’re approved and you decide to accept the life insurance company’s offer, we notify them and they issue your policy and arrange payment. Issuing you the policy and arranging payment usually takes 5-7 business days. Once your payment clears, we’ll happily inform you that your life insurance policy is now active and in force.
As you’ve read, there are multiple parties involved in the life insurance buying process and it can take anywhere from 2 weeks to a couple months from start to finish. We ask for patience during this journey, but remember that your Quotacy team members promise to keep you updated every step of the way and they will do their best to move your application along as efficiently as possible.
Life insurance is one of the most important purchases you will make for yourself and for your loved ones. Once your policy is put in force you will have given your beneficiaries a means to replace your income and help with financial loss in case of your premature death. It is truly one of the most selfless acts of love that you can do for your family. Start today by getting a term life insurance quote. The peace of mind life insurance brings is worth the time it takes to get approved.
Photo credit to: Stuart Richards