How Long Does the Proces Take?

One of the most common concerns that individuals have when they start the process of seeking a term life insurance policy is when their policy will begin, and when to use an agent. In addition to that concern, they always want to know how long it takes to get their policy started from the time they submit their application. The short answer is that it can take approximately one month to get a policy into effect. The more complex answer is that the time from initiating your application to getting it started can differ depending upon your health history.

If you have a compendium of illnesses that takes you alone a while to remember and recount on paper, then it will take the insurance underwriters a good while to collect information. As they collect information and sort through it, they will determine how much the actual term life insurance policy should cost you. If you have a pretty clean bill of health, then you may actually hear back a bit sooner about the rates that you will pay.

Follow up Information

Beyond writing down your own medical history, and having a free medical exam (or no medical exam), your potential carrier may request additional information from your doctors. Typically you will have a form to fill out that gives them permission to request your medical records from your doctors. Depending upon how long it takes for your doctor to get the additional medical records or information to the insurance company, your application can take more or less time to process.

While the insurance carrier may go through your medical records, they will also take into account the information that they collect at your medical exam. In some cases you may not have to take a medical exam, and for other policies you will have to take a medical exam. Usually there is a laundry list of medical questions that accompany the medical exam. You may be asked about any prescriptions that you take regularly, the kinds of chronic illnesses, surgeries, allergic reactions, and the like.

It is morbid, but the term life insurance underwriters and actuaries try to determine risk factors for you. Risks that may lead to your death is what they are trying to determine. If you have a greater likelihood of dying during the term for your life insurance policy, then you will pay higher rates. The other matter to tend to while you are waiting to hear back from the insurance carrier, is to determine how you will pay your premium.

Paying Your Premiums

You may opt to pay your premium in one installment every year, for the life of the policy. Or, you may decide to break it up into installments. When you pay in installments there is a greater likelihood that you will be charged processing fees, or such. Sometimes, you may likewise receive a discount for paying the entire premium all at one time.

The process for your term life insurance policy can take one month, give or take a couple weeks. Though, it is more likely that the insurance company will have an answer for you within four weeks of your application getting rolling. Regardless of how long it takes to go from applying for your term life insurance policy to when it begins, you will probably feel a bit anxious at some point. It seems common to feel like you are waiting a long time. The idea is that the policy will either go into effect sooner, later, or not at all. You may even decide that you do not want the policy after all.

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