The Potential Outcomes to Every Life Insurance Application
After you apply for life insurance you’ll need to be approved. Here are the possible outcomes to your life insurance application.
1. Approved as Applied
Your agent will ask you the questions that the life insurance company will want to know before approving you. You’ll apply based on your specific details and you’re approved for the premium you applied for. Excellent!
2. Approved Better Than Applied
Your agent quoted you based on your specific health details and your application is approved at a better health class rating. This means you’re approved at a lower premium than what was originally quoted. Many life insurance companies that we have access to will provide healthy credits that can improve your health classifications from standard (more expensive) to a preferred rate class (less expensive). It all depends on the specifics of each case.
3. Approved Other Than Applied
With an AOTA, you applied based on your known details, however something was revealed in underwriting that changed your final approved rate class. Often times it simply comes down to your old medical records or lab results showing some a health issue. Some common reasons for AOTA:
- Elevated blood pressure
- Elevated cholesterol
- Elevated blood sugar levels
Typically 15% of all life insurance applications will come back as approved, other than applied. This is why it’s important to work with an independent agent who can find the best company based on your specific health details. Every company is different and rates can vary widely based on your health.
“A quote is just a quote. In the end, the insurance company will determine what the price of your life insurance will be.”
4. Bait & Switch
With a Bait and Switch, you were probably given a quote by your agent incorrectly, either by omission or on purpose. The life insurance policy ends up coming back at a higher priced premium and now you feel stuck with taking this policy because you need coverage. Protect yourself from a possible “bait and switch” by not using a call center agent who have huge quotas to fill. They are pressured to submit applications as quickly as possible.