Why Does it Take So Long to Process a Life Insurance Application?
The life insurance industry is very interesting. You can apply to purchase a life insurance policy, but it may take longer to get your policy approved than it would take to purchase a home. While up to two or three months may seem like a long time, the life insurance companies want to make sure you are a good investment for them. They do this by determining your life expectancy and then offering a competitive price based on that information.
There are various parts of the life insurance application process. Once you decide which policy you want, you must fill out a life insurance application and get it to the life insurance carrier. In many cases, the life insurance company will not begin processing your application until they receive the results of your life insurance medical exam as well.
Once they begin reviewing your application, they may decide that they also want to see an APS (attending physician statement). This is really when the waiting begins. It can take up to 6 weeks for the carrier to receive the statement from your doctor. In most cases, you can speed up this process by calling your doctor's office and letting them know that you are waiting for the records to be sent.
Once the APS is received, the life insurance company may take another week or two determining which health class you fall into. Once your health class has been assigned, the policy can be issued and sent out to you. When the carrier receives payment and any final delivery requirements, the issued policy is put in force and you are covered. This whole process generally takes from 4-8 weeks.
