What is the process for setting up life insurance?

People choose life insurance for typically one reason: security. Whether it’s to protect family and loved ones, leave behind an inheritance or cover outstanding debts, more Canadians than ever are purchasing life insurance to increase their financial security. Purchasing life insurance can be done over the phone or in-person. But as a broker, we prefer face-to-face because we believe it gives us a chance to really understand our clients and get more thorough in our information gathering. We’re flexible with our time; we know that not everyone can make appointments during the business day, so we make ourselves available for meetings outside regular office hours. In fact, to make life easier for our clients we’ll usually visit them instead of having them visit our offices.

Here’s how the process usually works:
  1. Initial meeting
  2. Put quote together
  3. Fill out application
  4. Deliver the policy by hand

It begins with an initial meeting. This is where we gather information about the client. We want to know facts so we can pair coverage’s properly. We take down medical and lifestyle information and we also talk about income. Every client is provided a full evaluation of recommended insurance based on the information we’ve gathered. It’s our job to consult with our clients and impart the information required for them to make an informed decision.

Once we’ve moved through the information gathering stage, the next step is to shop around on behalf of the client. This is where we look at the products available and assess which would be the best fit for the client, based on all of the information gathered. We make sure that you understand what you can expect to pay for your life insurance based on your current status. Keep in mind that what you pay for life insurance relies heavily on the following:

  1. Age
  2. Health Status
  3. Smoking Status*

Once our client has decided on a life insurance product, we begin the application process. The application generally takes 60 minutes to complete, and we do this face-to-face. In some cases, if we can’t meet our clients face-to-face (e.g.: they’re out of town or travelling) we can do it via skype. There are also medical requirements that we will order on behalf of the client. A nurse will come out to do samples (e.g.: blood and urine.) From here the application is sent to the insurance company. Underwriting can take anywhere from two days to six months it really just depends on the carrier and coverage.

When the underwriting is done, the broker is notified and the policy is delivered to the client in person. Moving forward, any changes to the policy can be done through the broker (but an individual can also deal with the insurance company directly, though you may just want to leave it to your broker.)

Remember, the length of time it takes to complete the entire process rests on the client – they truly drive the speed we go.

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