Life Insurance: Preparing for the Application

When applying for a life insurance policy, it is wise to prepare for the application process. There are a lot of details needed to complete the necessary fields in the application and the process will be much less stressful if the applicant comes to the application as prepared as possible. There are quite a few sections to the application a few forms that are needed in addition to the application to complete the procedure.

Preparing for the Applications Sections

There are several pages and required sections that must be completed before submitting an application to purchase a life insurance policy. To begin with, the first section is the personal information section and this portion of a life insurance application is quite thorough. In addition to some of the more common application questions such as name, social security number, gender, address and birth date there is also usually birth place, drivers license number and issuing state, employer information including the employer address and the applicants occupation and wages.

Owner Section, Plan Choice and Beneficiary

The owner section of the application is where the owner of the policy is documented; generally this portion is required if the owner is not the insured or if the owner is a trust. Next is the plan section. Typically there will be a section about what is being applied for. This section includes the plan, the amount and the term of the policy choice as well as any riders that are going to be added to the policy. The next step in the application process is generally to record the beneficiary and if applicable the contingent beneficiary.

Final Sections of the Application

The rest of the application will include sections regarding trust ownership as well as business policies that are purchased as a safety net for business owners who have a potential loss in the event that one business owner passes away. In addition, the payment section allows the applicant to determine the mode or frequency of the premium payments as well as which account the premium funds will come from. Most life insurance plans are set up for direct depot. Finally, there is a menagerie of health questions to answer.

Additional Forms

In addition to the application there are a few required forms that must be submitted at the same time. A HIPAA Authorization Form must be submitted with the application, signed by the applicant. This form allows the insurance company to have authorization to your personal medical information. HIPAA is the acronym for the Health Insurance Portability and Accountability Act and it was placed into effect in an effort to protect the privacy of patients. The other forms that must be submitted are the HIV consent form and the medical examination authorization form.

Preparing for a life insurance application begins with understanding that it may be a bit time consuming. Many people work with an agent and the agent takes care of much of the paperwork. Either way, mentally prepare for many questions. Get out as much information ahead of time as possible; have your drivers’ license available, 5 years of medical history, doctor visits, clinics and offices and prescription names and dosages. Being prepared will make the application process go smoothly.

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