The Life Insurance Application Process – New Jersey

Applying for life insurance might seem straightforward, but it can involve numerous complexities and misunderstandings that could lead to disputes with the insurance provider.

The application process: this generally consists of two main components: (1) a written application filled with questions about the applicant, and (2) a medical examination.

Often, an insurance broker or agent assists in this process. Brokers work independently while agents work directly for a specific insurance company. A broker or agent may hand the application to the applicant to complete, or might ask the questions and record the answers. This latter approach can be prone to inaccuracies or errors.

Understanding the broker’s or agent’s role is crucial. While brokers and agents may appear to support your interests, especially after helping you choose the right policy, it’s important to understand that New Jersey law often places the responsibility for any misrepresentation in the application on the policyholder. There are exceptions, so it’s wise to consult a New Jersey life insurance attorney if your claim is denied.

It’s also important to recognize that brokers and agents earn commissions on policy sales rather than on the thoroughness of the application process. This creates a potential conflict, as they may prioritize selling policies over ensuring a meticulous and accurate application.

The written application includes a variety of questions concerning medical history, income, and leisure activities. These questions can be very broad, often covering a long period of time and multiple topics. Applicants might struggle to recall their entire medical history, especially regarding conditions that have resolved or caused no issues in the past.

Therefore, it’s vital to read all questions carefully and provide complete and accurate information. Failure to do so could result in the policy being rescinded later on.

Medical exams are often, but not always required, and they are typically conducted by a nurse or paramedic who collects blood and urine samples and may ask additional health-related questions.

Before submitting an application, review it thoroughly to ensure all information is correct. Relying on the agent or examiner to do this could lead to costly mistakes for your beneficiaries.

You can contact New Jersey Life Insurance Denial Lawyer Eric Dinnocenzo at (212) 933-1675 for a free consultation.