What is the Life Insurance Application Process?
Once you select an insurance company and rate, you then
can request an application by filling out the application
request form.
Once you request the insurance application, a licensed agent
from the company you choose will contact you and set up a
convenient appointment for a no-charge physical exam. The
physical exam can take place in your home or office, and is
performed by a medical professional at no cost to you (the
insurance company pays for the exam).
Upon completion of the application and physical exam, the
life insurance company will submit the information to the
underwriting insurance company. Four to eight weeks are required
for the life insurance company to underwrite and issue the
policy.
The entire process is that simple!
What is Term Life Insurance?
Term life insurance is life insurance coverage at a guaranteed
rate for a specified period of time. (Example: 30 year level
term would guarantee a level premium for 30 years based on
a specified death benefit). Term life insurance is usually
the least expensive form of life coverage.
What is a Beneficiary?
The person(s) named in the policy to receive the life insurance
proceeds upon the death of the insured.
What is the Cash (Surrender) Value?
The amount that is available in cash for loans and that
may be available for withdrawals. Accessing Cash Surrender
Value may reduce the death benefit and may increase the risk
of lapse.
What is Convertible Term Insurance?
Term insurance which can be exchanged (converted), at the
option of the policy owner and without evidence of insurability,
for a permanent insurance policy.
What is the Face Amount?
The amount stated on the face of the policy that will be
paid in case of death. It does not include additional amounts
payable under accidental death or other special provisions,
or acquired through the application of policy dividends.
What is Insurability?
Acceptability to the company of an applicant for insurance.
Insured or Insured Life?
The person on whose life the policy is issued.
What is Level Premium (Life Insurance)?
Life insurance for which the premium remains the same from
year to year. The premium is normally more than the actual
cost of protection during the earlier years of the policy
and less than the actual cost in the later years. The building
of a reserve is a natural result of level premiums. The payments
in the early years, together with the interest that is to
be earned, serves to balance out the underpayment of the
later years.
What is a Loan (Policy Loan)
A loan made by a life insurance company from its general
funds to a policy owner on the security of the cash value
of a policy.
Paid-up Insurance?
Insurance that will remain in force with no need to pay
additional premiums.
Who is the Participating Policy?
A life insurance policy that is eligible for the payment
of dividends by the insurer (see also Dividend.)
What is Permanent (Life Insurance)?
Any form of life insurance except term; generally insurance
that builds up a cash value, such as whole life.
Who is the Policy Owner?
The person who owns a life insurance policy. This is usually
the insured person, but it may also be a relative of the
insured, a partnership or a corporation.
What are Premiums
Payments to the insurance company to buy a policy and to
keep it in force.
What is Renewable Term Insurance?
Term insurance which can be renewed at the end of the term,
at the option of the policy owner and without evidence of
insurability, for a limited number of successive terms. The
rates generally increase at each renewal as the age of the
insured increases.
What is a Viatical?
A Viatical is the one-time, lump sum purchase of an existing
life insurance policy by a licensed Viatical Settlement Provider.
The financial services industry generally refers to these
transactions as viatical settlements, senior settlements
or life settlements. The viatical settlement will always
be larger than the policy's cash surrender value. There are
no restrictions on the use of funds. Insureds of all ages
may qualify if their life expectancy is estimated at twelve
years or less. The company purchasing the life insurance
policy becomes its Owner and Beneficiary, and pays all premiums
until the policy matures. Such transactions may be subject
to federal, state and local income and/or capital gains taxation.
For more information refer to go to American
Viatical
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