Underwriting

The Underwriting Process

Please do not cancel any current life insurance coverage until your new life insurance policy in force and you have examined it within your “free look” period.

Topics:

1. How long does the process take?

2. When does the underwriting process begin?

3. Why can the underwriting process take so long?

4. Why does the insurance company obtain my medical records?

1. How long does the process take?

The process life insurance companies use to determine the risk factor of issuing any policy is called the “underwriting process”. In general, this process can be completed the same day, within two weeks, or longer depending on the individual insurance company’s processes. In some cases, the underwriting process can take up to eight weeks, or even longer. It is important to apply early, particularly if you are considering letting an existing life insurance policy lapse.

2. When does the underwriting process begin?

With most life insurance companies, this process begins when the life insurance company receives your completed application and medical exam. At this time, the underwriter will gather information from various sources – your doctor’s records, your medical exam results, the information you provided on the application, and perhaps even your motor vehicle record.

3. Why can the underwriting process take so long?

Because the life insurance company has to compile so much information from so many different sources, the underwriting process can be (but is not always) lengthy. Generally the longest portion of the underwriting process is the obtaining of your doctor’s records, also known as an APS (Attending Physician Statement). The case manager assigned to your case is dedicated to moving your application through as quickly as possible.

4. Why does the insurance company obtain my medical records?

Since life insurance is based the assessment of your health risk, it is often necessary for the life insurance company to obtain your medical records and verify the state of your health.

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