What Happens When You Apply for Life Insurance?

The Insurance process can seem intimidating when you’re not sure what to expect. From questions about your finances to very personal health questions and tests. What happens when you apply for Life Insurance?

It can be overwhelming to start the process if you don’t know how it works!

Here, we know that Education is Power.

This short cartoon will walk you through what happens when you apply for life insurance.

What happens when you apply for life insurance?

Depending on a number of factors, getting an insurance plan can be almost instant or take a few months. There isn’t much you can do to effect the timeline – it’ll depend on the Insurance Company you apply with, the type of insurance plan you get (or more accurately, how big of a plan you get), and your medical history, as well as a number of other factors.

Getting Insurance is meant to be a simple process but, when dealing with anything health related, there can always be complications. So, let’s walk through the steps of how the situation will ideally pan out. Remember, it may not work out exactly like this, but this is the typical process:

1. Meet your Adviser

In the first meeting with your Adviser, they’ll ask you about your goals, finances and figure out what you need.

2. Adviser finds options for you

Your Adviser will take the information you gave them and go to the drawing board. If you’re working with a Broker (like myself), they’ll be looking different plans from multiple companies. They may have a plan in mind already and be able to start the process in the same meeting, but they’ll likely have to come back for a second appointment.

3. Pick the Plan

Your agent will show you the plans they have in mind (they should be giving you a couple of options) and help you pick a plan that works just right for you.

4. Apply

Then, you’ll apply! You’ll be asked questions abut your health, habits, job and income. Be honest with your Adviser! The questions will be very personal about your current and past health, (likely) as well as the health of your close family members. Your job and income will determine how much you can have coverage for – this is by law and not necessarily dependent on the Insurance Company.

5. Medical

Whether it’s life or disability insurance, you’ll likely have to go through a medical. How that works will depend on many factors including the Insurance Company you’re applying with, health history, habits, etc. It can range from a phone interview to blood and urine samples or even special scans and tests. The Company needs to determine what they’re willing to cover you for with all the ‘information on the table’ so to speak.

6. Pay your First Bill

Once you’re approved, you’ll have to pay your first bill (or premium) to start the coverage. You might give them a credit card to charge when you first apply or wait until they’ve accepted your application to pay – again, this is determined by a number of factors including the Insurance Company that you’re applying with and personal preference.

And that’s all there is to it! Your agent should walk you through the process and help with any hiccups along the way, making the process easier for you.

Insurance is an incredibly important step towards financial independence and preparing for the emergency situations that life can bring. You won’t know how valuable a plan is until you need it. But,  it won’t happen to you, right? These things always seem to happen to other people, so make sure your friends and family sit down with an Insurance Agent or Broker!