Editor’s note: This post was originally published on 8/22/17 and has been updated for accuracy and comprehension.
Have you ever wondered what happens to a life insurance application after you’ve submitted it?
There are a few steps involved, each one designed to keep the process moving along as smoothly as possible.
The very first thing that happens to an application is that it’s checked to see if all the necessary information is there.
If something’s missing, it can slow down the processing of the application.
As a life insurance producer, you can help by making sure applications are complete before they're submitted.
Watch the video now for the rest of the steps in the process and make sure all your applications move quickly and without a hitch toward a closed case.
After the video, keep reading for the full transcript.
VIDEO TRANSCRIPT
Expedite the Life Insurance Application Process
One of the most common questions we get from our customers is "What happens to my life insurance application once it gets to Leisure Werden and Terry?" That's a really good question because the more you know about the process, the better you can communicate with your client and manage their expectation.
Let's talk about a few steps that happen once an application hits our office – or more likely, our computer screen since most agents will actually scan and email us their applications.
Well, it all starts in our factory.
Just kidding! But that brings up a good point because most of our applications do come in by email these days, which is definitely more efficient and probably more convenient for our agents.
A lot of agents still don't know that they can scan and email their applications to us. (A fax machine may not be dead yet, but it's probably on life support!)
Let's walk through the process. The first thing that happens when an application hits our office is that the application is reviewed for the most pressing items that are commonly missing, such as signature, date of birth, etc.
Then, our case managers or assistants are scrubbing the application while we have another team that's working on the licensing aspect. This includes anti-money laundering training checks and checking to see whether an agent is appointed with that particular carrier, if they've done business with them before, or whether or not they need to request a new appointment with that carrier.
It's important for the agent to know that as soon as we get that application we're working on it; we have teams of people working on it simultaneously.
The next step depends on the applicant's age and medical history. We may order medical records from their primary care physician. It's not a secret that obtaining medical records can take some time, so it's good that we're ordering them as soon as we get the application or the carrier tells us they're needed.
The agent gets notified that we're working on their application and certain things have transpired in an initial status memo that goes out within 24 to 48 hours. This update lets the agents know that we've received the application, and it lists any outstanding requirements, as well as listing what we've already received.
In the meantime, we're still doing the licensing tracks, we're still scrubbing the application and getting it ready to be submitted to the carrier. It's an important point for the agent to know that we're actually working on that application before they get that correspondence.
When the application is actually assigned to the carrier underwriter, we data input it and image it to the carrier immediately. Then, we'll assign it to a case manager.
Most carriers don't assign it to an underwriter until all the requirements are good and have been received. It's important to stress that an application that's submitted in good order is more likely to go to the underwriters sooner and we'll get the offer we're looking for much quicker.
It's also important for agents to know that they'll get a communication at least every five business days – sometimes sooner – which gives them a status update and a snapshot of where the case is at at the current time.
That doesn't mean we're not working on it for those five business days. We may be getting requirements, and, during that time, we might be getting communications from the underwriter about certain things. Our case managers and our in-house underwriter are working on the case to make sure that it's moving along as promptly as possible.
I can't underscore enough that the more in good order you submit that application, the smoother the process will be and the sooner you'll get that good offer that you're looking for.
Do you find that having a firm grasp on the process yourself aids you in guiding your clients through the procedure?
