Accelerated Underwriting, E-Applications, and E-Policy Delivery

Raymond Bell |

Technology has streamlined many processes, including life insurance. Applications and policy deliveries can now be handled electronically, eliminating the need for cumbersome paperwork. An applicant can be approved and have their policy issued within days.

Historically, the insurance industry has been known for lengthy, confusing applications and a prolonged underwriting process. However, internet-based applications and e-signatures have made the process simpler and more secure. Applications can be submitted electronically, and once received, insurers can make underwriting offers by accessing prescription databases, the medical information bureau, credit reports, and other electronic data. Approval can occur within days. If an applicant is not approved through accelerated underwriting, they are referred to traditional underwriting.

Accelerated underwriting is typically available for applicants aged 18 to 60 with a maximum face amount of $3,000,000, although these parameters vary by carrier. Applicants who do not qualify for accelerated underwriting are processed through traditional underwriting. Technology has also improved traditional underwriting; insurance exams and medical records can now be handled electronically. Examiners use tablets or laptops to complete and upload exam paperwork, and lab results are sent directly to the carrier, allowing applicants to view their results online. Electronic Health Records (EHR) can also be transmitted much faster than paper records, depending on the medical facility's capabilities.

Most carriers now send policies and delivery requirements as PDFs, eliminating the need for printed hard copies. Agents can choose to print and hand-deliver them or use DocuSign or the carrier’s preferred e-policy delivery program. Electronic delivery saves time and money, with policies placed in-force within days, eliminating the cost of priority parcel services.

While these technologies may seem daunting initially, they become easier to use with experience. Reducing paper and turnaround times saves both time and money, making the effort worthwhile.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through WCG Wealth Advisors, LLC a Registered Investment Advisor. The Wealth Consulting Group and WCG Wealth Advisors, LLC are separate entities from LPL Financial.

Guarantees are based on the claims paying ability of the issuing company.