Who and What is Involved in Buying a Policy?

1. An intermediary
   Intermediaries are representatives of the organization where you purchase the product. Intermediaries receive compensation in the form of commissions for the sale of the product.
2. An application
   Consumers are required to sign and complete applications detailing financial transactions, medical histories and pertinent details.
3. A Consumer Credit Report
   Consumers sign an authorization allowing the organization to access your credit and lifestyle circumstances. Organizations must review every factor to ensure the proper risk is assessed.
4. An MIB
   Consumers also allow organizations to access their medical history. A report is usually requested from the Medical Information Bureau.
5. Para-Medical
   Depending on the insurance amount you apply for, you may have to undergo a medical and provide a urine sample or saliva sample. Someone will take your blood pressure and ask about your medical history to allow the life company to assess the risk properly.

Once approved for insurance coverage, the organization issues a unilateral contract outlining details of the policy and coverage. It means that the insurance company is bound to you but you are not bound to the insurance company. You have 10 days to review and if you choose, to cancel the insurance contract and have all premiums refunded to you.

Many changes have led up to the year 2000 and few believe that we have seen the end. Today, the Internet is not only a major source for information it has also become the instrument that, according to many, will propel changes rivaling those that accompanied the industrial revolution.

Most companies, including those offering financial services, have been affected. Few would have predicted trading or banking "on-line" yet it is no longer a novelty. Life insurance companies have not been left behind. There have been more product changes and enhancements in the last few years than we have seen in the last century. For many decades "Whole Life" was the foundation product of the industry. It is rapidly being replaced by universal life type of policies that address new concerns and focus on new planning opportunities for consumers. Term insurance, an inexpensive form of life insurance to look after temporary needs, is still available.