The Process of Purchasing Health Insurance
Complete an Application
Insurance companies provide various ways for you to obtain and submit a health insurance application:
- ONLINE APPLICATION
This is the fastest way to purchase health insurance. You provide application data directly to the insurance company website. Processing of the application begins immediately. - DOWNLOAD THE APPLICATION FORM
Download the form from the internet. Print it, then complete the application by hand. Submit the document via mail, fax or scanner/email. - REGULAR MAIL
An agent or insurance company mails you the application form. You complete the document by hand and send it back. - PHONE-IN APPLICATION is available from limited health insurers.
Submit a Payment
Most insurance companies require a premium deposit be submitted with the application:
- Insurance companies typically allow you to submit a deposit via check, money order, credit card or direct charge to a bank account.
- Some insurers also require a non-refundable one-time application fee.
- If your application is approved, your deposit will be applied against your premium requirement for the initial payment period.
- If your application is denied or if you refuse the insurer's counteroffer, your premium deposit will be refunded net (if applicable) any non-refundable application fee.
An Initial Review is Performed
The insurer reviews your application and may request additional information they believe necessary to complete an accurate evaluation:
- The insurer may phone you to obtain additional information.
- The insurer may require you to complete a questionnaire specific to a health condition indicated on the application.
- The insurer may require copies of your medical records.
- If medical records are required, most insurers pay a reasonable fee for the work involved in copying and mailing the information.
- For applicants age 55 or more who have not seen a physician in the last year, a checkup or paramedic exam may be required. Some insurers will assist in arranging a paramedic exam.
The Application is Underwritten
When required health history information is accumulated, the insurer studies the data and makes a decision. Possible outcomes include:
- The application is approved with standard coverage at the lowest allowable rates. This is the preferred result.
- The insurer counteroffers with a higher rate requirement.
- The insurer requires a medical condition-specific exclusion not included in the standard insurance contract.
- The insurer requires a non-standard exclusion AND a higher rate.
- The insurer declines the request for insurance, refunding the premium deposit, net (if applicable) any non-refundable application fee.
How Long does the Process Take?
There are no guarantees as to how long it will take an insurance company to process your application for permanent health insurance.
For a young person in excellent health, the process may take only a day. If a more detailed review is required, the insurance company will need more time.
Typical health insurance application turnaround is two or three weeks, but it's not unusual for an insurance company to take a month or longer. It depends on the insurance company, it depends on the health insurance product, and it depends on the applicant's health history.
To get a informed estimation of how long it will take you to obtain health insurance, contact a health insurance professional.
