Life insurance has received a good share of the media publicity and advertisements and that has made them popular and today almost everyone has at least heard about it. But, most people don’t know the different types of life insurance. If you question these people regarding the life insurance they will be blank. For example if you ask them what term life insurance is I am sure they will have no answer to this. Anyways, term life insurance secures the future of the family and saves them from financial crisis after the death of the policy holder. The main reason why people buy life insurance policy is because they want some financial support for their families. But there are some people who want a life insurance policy because they are looking for some investment opportunity.

The coverage amount that the policy offers affects the cost of this life insurance and out of the various policies the term life insurance policies are the cheapest and the most affordable ones.  The coverage amount and the life insurance premiums are co-related. If one increases the other automatically increases and vice versa. The lower the coverage amount, the lower will be the life insurance premium. The reason is quite simple, for a five year term life insurance, you may pay $600 for a $100,000 policy and $1200 for a $200,000 policy. In the case of the term life insurance policy the most important thing to be remembered is that the amount that you pay per year for term life insurance is not accumulated.

Though while buying the life insurance policy most of the people are not concerned about the process of life insurance but still there are some people who are interested in knowing the process of life insurance. The first stage in the process of life insurance is to fill the life insurance form and either hand it over to the life insurance agent or the life insurance company. All the insurance companies have different process of filling the application form. In today’s time most of the companies prefer the online mode means to fill up the life insurance form but the traditional way of application filling the form is still practiced at lot of life insurance companies.        

As per the traditional method of life insurance things start when the life insurance company mails the life insurance form to the applicant and the applicant fills it and mails it back to the life insurance company. This method involves lot of time and this is the major drawback of the process. Only once when the form is received by the life insurance company the next process can begin. In all such cases the applicant is subjected to a medical checkup that is done to access the health condition of the applicant.   

The medical professional will call the applicant and then fix up a time for the appointment. In the past, the applicant had to go to the allocated health care or diagnostic laboratory for the medical check up. But these days, the applicant does not have to leave his or her house. Often it is seen that the health care professional is called on weekends. The medical examination may not take more than few hours. However, there are some life insurance companies that may ask for a complete body checkup.     

During the medical check up, the medical professional will take a blood sample, urine sample, and may also ask the applicant few health related questions. If the applicant had an operation in the past, the operation details are asked for. The questions related to the operation would be very basic and the medical professional may also ask for the discharge summary of the operation. After the medical checkup, the medical report is generated. The generation of the medical report may take a couple of days so the applicants have to wait with baited breath.  

The result of the medical report is very important because upon this depends the rate and the type of policy that is to be given to the applicant.  The process of underwriting cannot begin till the time the medical reports and the application form reaches the life insurance company.  Just to seek some additional details of the applicant the life insurance companies may give a call to the family doctor of the applicant during the underwriting process. The life insurance companies thoroughly study the medical reports of the applicant.

Usually a month’s time is needed for the underwriting process to complete. The company will grant the life insurance policy to the applicant only if after the underwriting process the company is satisfied by the medical reports and the other details of the applicants. Based on the underwriting report, there are three scenarios:
-    In the first scenario, the applicant is given the same rate class that was requested
-    In the second scenario, the applicant is given a higher rate that was quoted
-    In the third scenario, the applicant is denied the life insurance policy.

There are cases where the life insurance company rejects the application form of the applicant and this is very disheartening for them and the worst thing is that at times the life insurance company does not even give the reasons for the rejection. The applicant has no other option than to approach the other life insurance companies for the life insurance policy. If one life insurance company has rejected the application, there are chances that the applicant may be rejected by another life insurance company. In this situation one must carefully analyze the situation and try to find out why he or she application was rejected by the life insurance company.

Generally the application of all those who have failed the medical test is rejected by the life insurance company. One solution to this is to work out on the problem, yes the applicant has to figure out what exactly the problem is so that he/she can fight against it. Once when the health condition improves then the applicant can again apply for the policy.

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