what happens when you're approved for a
life insurance plan that you applied
for? The good news is that
you're approved. We now go into
the phase known as policy delivery.
There are some important tips to
remember here and although each carrier
is a little different in their
requirements (we'll help you with your
particular life insurance company), some
common threads run through them.
Let's look at how life insurance
policies are delivered.
First, it's important to understand how
the life insurance contract works.
When you submit your application, this
is called the "offer". Essentially
you are making an offer to the carrier
based on your pertinent information for
a given rate. The carrier then
decides whether to accept, decline, or
change this offer (i.e. change the
rates). At this point, the carrier
will deliver you a policy.
You do not officially have coverage
until you return this policy back with
your confirmation of its terms.
This is important. You do not want
to go through the entire application,
paramedical exam, and underwriting
process only to delay or possibly void
the life insurance coverage due to
mishandling this final confirmation.
Let's look at what is generally
acknowledged and confirmed by you after
Common requirements for you, the
Acknowledgement of premium assigned.
You need to confirm the rate that has
been offered. Keep in mind, it
might be different than original due to
health status, paramedical, and
Acknowledgement of effective date or a
request to update new effective date.
This is important since effective date
dictates when your coverage (and your
policy review with agent for
understanding of terms. Make sure
to go through any question or contract
terms with us as your licensed life
Copy of your
application enclosed with policy.
Keep this for your record.
receipt of signatures. This is
very important to make sure your policy
goes into effect. You must return
the signed contract by this date.
payment (can be check, or electronic
auth.) if not already submitted.
Auto deduction and/or credit card can be
a safer way to pay since there's no
"lost in the mail" scenarios that can
jeapardize your coverage.
frequency decision verified. This
is where you decide to pay annually,
quarterly, monthly, etc. Your
premium modal can affect your rate (with
shorter periods being more expensive)
Acknowledgement of policy delivery
signature. You are acknowledging
that you did in fact receive the policy.
certification- some carriers want you to
verify whether or not you are subject to
‘backup witholding’ due to
underreporting of interest or dividends.
Age change- if
you’ve had an age change during the
process, instructions are provided. You
may/may not be able to
lock premium rate by keeping effective
date prior to birthday. Please contact
if you're straddling two ages so we can
find the best rate and value.
The main take-away is that there is a
time constraint. You can't set
this policy info aside and get to it in
a few weeks or assume you were approved
and therefore, have coverage. You
have to acknowledge and confirm with the
carrier once the policy is received and
do so before the deadline. We can
help with this process and in fact, we
are an integral part of helping you
successfully navigate your life
insurance policy delivery.