Disability insurance provides working professionals with protection against the financial risk of one day being unable to work due to illness or injury. If an illness or injury prevents you from working, disability insurance can provide monthly benefits intended to replace a percentage of your pre-disability earnings. To obtain an individual disability insurance policy, consumers must be in good health and must go through a process known as underwriting. For consumers interested in getting coverage, below is an explanation of what to expect during the application process.
Completing the Insurance Application
There are still some agents who prefer to complete insurance applications during an in-person meeting, but in many cases the application can be completed over the phone and electronically. A disability insurance application will typically be between 11 and 25 pages covering a large number of topics, including your personal information, work-related information, medical history, and an overall risk assessment. In addition to answering questions, the applicant must also sign specific releases allowing the insurance company to review any medical information necessary to thoroughly underwrite the application. At the time you apply, you must also be prepared to provide financial documentation to demonstrate your current income.
insurance medical exam
Depending on the amount of disability insurance being applied for, most consumers will be required to complete an insurance medical exam that is provided by a paramedical service. The medical exam can be done at your home or place of work and usually includes regular lab tests, an abbreviated medical exam, and a comprehensive questionnaire about your medical history. This is a medical exam similar to the one required for life insurance.
Personal History Interview
Although it may seem tedious and extremely repetitive, the final stage of data collection is known as a personal history interview or telephone interview and includes questions very similar to those on the application. The interview will be conducted by a third party representing the insurance company and the results of the interview will be sent directly to the insurance company for review.
The “middle” stage
Once this information has been received, the insurance company will begin a thorough review process and may even request medical records directly from your current and former doctors if necessary. This stage can vary in time and often makes up the majority of the application process, between two and four weeks. Although it may take no more than a few days for a subscriber to review medical documents and records, it may take a few weeks to get the actual medical records from their doctor’s office. Try to be patient during this time, as much of it will be out of your or your agent’s control.
Receive and review your offer
After a thorough review of your personal, medical, and financial situation, the insurance company will either deny or approve your application and make you an offer. Consumers should review their approval carefully, as this will provide the true parameters of the benefits provided by the policy. Even if you initially applied for one thing, you could be approved for something slightly or completely different. Any changes that have been made will require your signature as a form of acknowledgment, so be sure to review the policy, policy summary, and any changes with your agent before signing these forms.
This summarizes the disability insurance application process. Please be patient and apply knowing that enrollment will take a total of four to eight weeks on average. Most importantly, this will provide you and your family with the necessary income protection and financial security, against the risk of disability.