Applications for life insurance have changed drastically in recent years. Amazingly these changes seem to gave set up the life insurance industry for smoother operations during the chaos of a pandemic and global quarantines. Scary as the times are, we are able to provide better and more efficient service for our clients with two trends that have come to fruition in 2020. WE see this as a ray a hope for everyone.
Automated Applications for Life Insurance Underwriting
The first trend has been the rise of automated applications which can be conducted fully online. Leveraging information compiled by data aggregators, and using advanced mathematical procedures closely related to those that created and continue to improve artificial intelligence, the life insurance industry has started to establish procedures that aim to streamline the process of life insurance underwriting. A decision for approval can now take place well within 24 hours, drastically faster than it took only a few years ago.
Thousands of people have already benefited from this quick turnaround that makes buying life insurance almost work like it’s 2020 versus 1920. Applying for and obtaining life insurance has never been easier than it is today.
Accelerated Underwriting Could Close The Life Insurance Gap
The second trend is accelerated underwriting. Accelerated underwriting holds the promise of being able to cut an agent’s time spent selling a $500,000 policy from 20 hours to roughly five, a Deloitte analyst said. The associated benefits from that are numerous. In particular, it could lead to more life insurance sold to Americans who need smaller amounts for basic protection.
Annual Milliman surveys show a steadily increasing shift to accelerated underwriting. For example, Milliman found that 24.6% of indexed universal life sales were made with accelerated underwriting for the fiscal year ending Sept. 30, 2018. That figure is up from 16.8% during the fiscal year 2017. The many benefits offered by accelerated underwriting have the potential to revolutionize the life insurance industry.
If you find yourself wanting to review your current coverage or explore applications for life insurance at the necessary and wisest level of coverage for you and your family, the time to act is now. Contact a professional at The Ziff Agency or apply online to receive and estimate.
(Sources: Insurance News Net and InsurancePro Blog)