Buying key employee life insurance is relatively easy as long as you work with an experienced life insurance broker. After gathering all the facts regarding the need for the insurance, specific health details and amount of coverage, we can identify the insurance company that will most likely offer you the best plan of insurance at the lowest possible cost. Following are “the next steps” required to get a key employee policy in place.
Please review each step carefully and call toll free at (877) 583-3955 with questions.
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The Telephone Interview
Once the best insurance company is identified, a brief 10-15 minute telephone interview is completed. During this interview, we will obtain your answers to the questions on the formal insurance application. The purpose of this call is to make sure that we apply with the correct insurance company “up front” so that there are no “surprises” or higher rates at final approval.
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The Application
Once the application is completed, we will email, fax or mail you the application for your review and signatures. In this step, you will carefully review each page of the application for accuracy, sign where required and return via e-mail fax or mail.
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The Exam
In most every case, a “mini physical” insurance exam is required to buy a key employee policy. The exam is conducted by a local licensed examiner who will contact you personally to setup an appointment at your convenience. The exam can be completed at your home or office and consists of a blood and urine sample, height, weight, blood pressure check, and a detailed review of your medical history. On some occasions, an EKG may be required. From start to finish, the exam usually takes no more than 30 minutes.
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The Underwriting Process
Once your signed application has been received and your exam has been completed, your paperwork is submitted to the insurance company to be underwritten and approved. Underwriting takes the most time because this is the step where the life insurance company assesses your risk and ultimate rate. The insurance company reviews your application and exam paperwork and orders any medical reports required from your attending physicians. The insurance company may also request financial information on the business and a brief telephone interview to verify the accuracy of your information. The underwriting process may take 2-3 weeks depending on the specific requirements needed.
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The Approval
After final review in underwriting, the insurance company formally approves your policy and you are notified immediately by our agency. In some cases the approval comes back at a slightly higher rate. If your policy is approved at a higher price than applied, our office immediately shops the marketplace to verify the offer. If there are more favorable opportunities to secure a more competitive policy, we may transition to that insurance company. In any case, you are under no obligation to accept a policy that is not competitive.
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The Policy is Issued
Once your key employee insurance policy is approved, the insurance company issues your policy. We usually receive approved policies within 3-5 days and we will forward it to you the same day. Instructions for the policy requirements are included on a cover page sent with your policy.
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The Delivery Requirements
Once you receive your policy, carefully review all documents including the instruction sheet will outline what you need to sign and return along with your initial check. Call us toll free at (877) 583-3955with questions. If you have no questions, please return the initial premium due and any completed and signed forms required in the postage paid envelope. Your key employee policy becomes effective when you complete the requirements and submit your initial check made payable to the insurance company. Congratulations!
If you have any questions about applying for key employee insurance or any of the items mentioned above, please call our office at (877) 583-3955.