STEPS TO LIFE INSURANCE [Officer, The]

From the underwriting process to the approval, whnat happens when you apply for life insurance?

YOU KNOW YOU NEED LIFE INSURANCE (OR MORE OF IT). Maybe you've already researched different plans and are ready to take the next step. But then you start completing the application and you're not sure how your personal information will be used.

The underwriting process

When you complete an application and return it, the form initiates an underwriting process. This process is when insurance companies assess life expectancy risk factors to determine whether you should be approved or declined coverage.

During the underwriting process, most insurance companies review your application for your age, gender, health, smoking habits, and other factors. In addition, insurance companies may need to employ additional underwriting tools before they can accurately determine your overall risk. Such information and tests, which are paid for by the insurance company and scheduled at your convenience, may include:

Paramedical exam: A medical professional will come to your office or home and ask you a few medical questions and take your height, weight, blood pressure, and pulse. A urine specimen will also be collected. This exam usually takes about 20 to 30 minutes.

Blood tests: In many instances, the insurance company will want to test your blood for cholesterol, glucose, liver, kidney, HIV, and more.

Physician records: Your medical history, including your medical records and doctor's notes, may help provide a more thorough analysis of your current health.

Telephone interview: A representative from the insurance company may contact you to learn more details about your medical history and driving record.

The insurance company may also contact MIB Inc., formerly known as the Medical Information Bureau Inc., to see if you've applied for other insurance in the past. MIB [www.mib.com] is a membership corporation owned by member life insurance companies in the United States and Canada. Its primary purpose is to protect its member insurance companies and consumers from insurance fraud.

There are different levels of underwriting and they vary by insurance companies, the type of life insurance, and the benefit amount applied for. Some insurance companies require full underwriting on most products, but others reduce their underwriting requirements for special offers, lower benefit amounts, or younger age groups. In general, these terms may be used for reduced underwriting: simplified, streamlined, and guaranteed.

The decision

The underwriting process can take anywhere from 10 to 90 days, depending on what level of underwriting is required. But once the required information is obtained by the insurance company, you'll be notified if you're approved or declined.

If you're approved for the coverage, you'll be sent the insurance certificate to review, your bill, and other paperwork. [Note: Your coverage isn't in force until you actually pay the premium.]

If you're denied coverage, you will receive a written notification stating why. If you question the decision, you can appeal the process. There have been instances when additional medical information has been requested from a member's physician and a more favorable decision has been made for the member.

In addition, the decision may not be permanent. If you quit smoking, lose weight, or bring your cholesterol level or blood pressure down, your risk for the insurance applied for may decrease.

ROA makes it easier

As an ROA member between the ages of 50 to 74, you can secure up to $50,000 in term life benefits on a simplified underwriting basis through the ROA Senior Term Life Plan. Simplified underwriting for this product offer means medical exams, blood or other lab tests, or physician records are only rarely required.

For more information, including rates and other plan details, call toll-free 1-800-247-7988 or visit www. roainsure.com.

This plan is underwritten by ReliaStar Life Insurance Co. and administered by Marsh Affinity Group Services. This policy may have exclusions, limitations, and reductions in benefits. Please contact the plan administrator for details.

BY TERENCE B. BERNIER, MARSH U.S. CONSUMER /AN ROA AFFINITY PARTNER