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When you are applying for life insurance, you need to familiarize yourself with more than just the type of insurance you want to buy, you also need to familiarize yourself with the application process. Life insurance is an extremely important financial tool when you are planning your financial future.
The application process can be a very daunting process when you are not aware of the fact that your application will be underwritten. During the underwriting process, your insurance quotes can change between the time that you compare rates with different insurers and the time that your policy is ready for issuance.
Knowing how to make sure your quotes are as accurate as possible is key.
To make sure that your rates are accurate and that your rate quote is not dramatically different from the amount that you will actually pay, you need to know what the underwriters look at.
Not only will the answers that you give on your application be confirmed, your health will be verified during a required medical exam.
Keep in mind that a blood test is only necessary when a medical exam is required to assess risk.
If you are not buying a policy that is fully underwritten, there is no need to worry about giving blood or urine.
If you would like to know exactly what a life insurance blood test is like and what the insurer will look for, you will need to read a guide designed to inform the consumer.
This consumer guide will provide you with all of the details you need to know, and even some details your agent might not tell you before you begin to apply for coverage.
Read on, and learn about underwriting processes and requirements so that you can improve your chances of getting approved for a policy.
Be sure to always compare rates using our FREE search tool at the top of this page!
What is underwriting and why is it so important?
Underwriting is a stage that all insurance applications go through. Some companies have much stricter policies than others, but the purpose of underwriting is the same across the board.
When an insurance policy is underwritten, the professional who is reviewing the application will check the answers provided and then do their own research to see if the picture you have painted about your life matches the pictures that the facts paint.
If some of the answers you have provided do not match up with the facts the underwriter has found during their assessment, premiums can change or the application can be denied all together.
All insurers must be careful when they are setting their rates because they need to be sure that they collect enough to cover the risk and also to invest money into stocks and bonds so that they are able to stay profitable.
The cost of insurance is determined by predicting how long a person will live and what factors can reduce life expectancy. If the company is not good at predicting how long a prospective policyholder will live, they will not collect the premiums that they need to collect from their clients to cover the benefit claims that are filed that year.
Life Insurance Marketplace Basics
Money that is earned in investments and money that sits in reserves will be used to cover operational costs and also claims.
This is how the marketplace works, and in a marketplace that is so competitive, having enough to cover the expenses is critical to staying afloat.
This is why the underwriting process is so important and why almost all insurers will either charge extremely high premiums or require that you pass a medical exam for coverage.
How Medical Exams Can Confirm Mortality
Life insurance underwriters use what is called a mortality table to show the probability of death or mortality for people in a specific demographic within a specific time frame.
The underwriter will use your birthdate and your gender to determine what the likelihood of you dying is in a specific age range.
If you are more likely to die than another person in another demographic, then you will automatically have a higher base rate for your coverage.
If your probability of death is very low within the period of time that the policy covers, your premiums will presumably be very affordable.
Mortality tables by themselves are effective, but they are far more effective when they are used side-by-side with medical exam results and a medical records search.
Perhaps the best tool that underwriters have to use to assess your health and to verify that the information on your application about your health is accurate is the life insurance blood test results.
When you are applying for insurance, you will sign different forms stating that you give the company consent to order your medical records and that you will submit to a medical exam so that a decision can be made.
Therefore you do not have a choice not to take an exam if it is a requirement to get insurance with the company.
What does a company look for?
You must understand that the life insurer does have a lot at stake when they provide you with coverage, so the fact that they check into your health should be understandable.
When you are letting a paramedical service provider take your blood or your urine, it is only natural to wonder what types of tests you are submitting to and what the company will look for when reviewing your results.
Blood test results can tell a company a lot about an applicant, but not as much as you might first assume.
During a paramedical examination, the nurse will check your height and weight as well as your vitals. The most important part of this exam is when your blood is drawn because blood test results can show things that could otherwise be hidden on the application.
Your blood sample can provide information on your heart condition, your cholesterol, blood pressure, the presence of medications, the health of your liver, protein levels, infections, immune system problems and more. All of the results that are measured could indicate the likelihood of you having a stroke, heart attack or being diagnosed with a medical condition.
How are the tests conducted?
If you get nervous to have your blood taken, it can help you ward off the nervousness by learning how the tests are conducted. As an applicant for such a long-term product, life insurers will make getting your blood taken as convenient as possible for you.
This is why the company will send a paramedical service to you to do the exam. You can have the traveling nurse come to your home, your workplace, or anywhere else you will be at a specific time during the day.
The routine tests only take minutes to complete. In addition to taking your vitals, checking your weight, and taking your blood, you may be asked to provide a urine samples or a sample of your saliva.
If you do not want a service to come to you and you prefer to see your own doctor, you can ask the company about the process to submit the test results. Most of the time this will delay the underwriting process which means that it will take longer for your insurance to be active.
What happens post Exam?
It can take 1 to 4 weeks for your results to be sent to the underwriter and then reviewed.
Usually, you will not hear anything from the underwriter unless something negative or concerning was found.
If something that will change your rates is found, you will receive a notice letting you know what the rate quote has gone up.
There is also a chance that a result on your test creates the need for more testing.
You may be asked to undergo a different exam or to have blood drawn again to rule out problems that are ambiguous. This could delay the underwriting process but is not very common.
Issuing Your Insurance Policy
After underwriting is completed, you will be assigned an official rate class and you will find out how much you will pay. You do have the choice to decline insurance if you are not happy with your classification.
Any money that you have paid will be refunded. If you have not yet paid the policy, it will not become active until you make your first payment. At that time, you will receive your policy.
Shopping for insurance can be a lengthy and intimidating process when you are not sure what to expect. As long as you know that you will be asked to give your blood for underwriting you will feel comfortable with the process.
Before you submit an application, be sure that you compare the pricing with more than once insurer.
Using a rate comparison tool, such as the FREE one below, will make the comparison process all the easier. Log in, enter your details, and then you can apply and submit for your blood test.