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My husband applied for a life insurance policy and it took two months to get it. Why does it take so long?

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  Answers  |  3

October 10, 2017

Sometimes, it can take that long, or even longer. At the same time, recent improvements in the life policy approval process can result in policies approved in only a few days. Here is what likely happens when it takes a long time. First, a person applies and that application goes to the carrier via email, not as paper. The exam call goes out to the applicant. Sometimes, the applicant takes days to respond, and then the date is set a week or more out. The exam gets done and the results go to the carrier. The results indicate a need for medical records. A doctor’s office may be slow to
respond (overworked, understaffed, etc.), or there may be 2 or 3 doctors. A medical office may require a special medical release form so add some more days to get this signed and returned to the carrier. Exams and records, plus motor vehicle records in some cases - are used to approve coverage. Once approved, the policy is sent to the agent who sends it to you. In some cases, it can be sent as a digital document directly to you. You sign for it and pay for it, and in a couple of days it is placed “in force” by the carrier. Total time: 65 or 70 days. If there is one factor that I can say expands and
adds uncertainty to the timeline more than any other, it is the medical records retrieval.

Of course, this is not the case with all - but it is the case with some. Omit the medical records part and subtract about 20-25 days. For non medical (no-exam) life insurance, skip the exam and skip the medical records. Add algorithmic underwriting with no human intervention - and an applicant with no issues - and reduce the timeline even more. Traditionally, just getting the application from applicants takes a while. At LifeInsuranceToday.US, applications can be found online. Want to skip a step? Complete your application at the site, sign it digitally, book your exam date while there, and take some time out of the process. We’ll get the rest done for you as quickly as possible. We have lots of practice at this, having helped thousands of satisfied applicants over the last 15 years.

Hope that helps.

$commenter.renderDisplayableName() | 12.11.17 @ 09:23

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November 07, 2017

Agents often ask that question too. We thought technology would speed things up, instead it made more questions to be answered. In the 30 years I've been doing this, a life application went from say 10 questions and issue in two weeks to 3 or 4 times that and paramedical visits with pages of questions which increase the time from start to issue. That said, that number of questions has also reduced the cost of insurance compared to 30 years ago.

The other big thing that eats up time with the underwriting process is what is called the attending physician statement (APS). These are information requests from your doctors who have treated you personally. An APS on average takes about 30 days from request to supplying the information to the insurance company. For most medical offices these requests are low priority as they receive about $100 to do them. So often they are done with other requests in a batch. So if your application requires an APS, by rule of thumb, tack on 30 more days in underwriting.

Most all of my applications take between 8 and 10 weeks as they are fully underwritten to provide the best possible pricing.

$commenter.renderDisplayableName() | 12.11.17 @ 09:23

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November 07, 2017

Usually, the time it takes to issue a life insurance policy is dependent on obtaining medical records in many cases, and that is generally the determining factor. Even great agents with great follow-up have to deal with large medical institutions that can take weeks to copy records.

$commenter.renderDisplayableName() | 12.11.17 @ 09:23

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