Who and What is Involved in Buying a Policy?

1. An intermediary
   Intermediaries are representatives of the organization where you buy your life insurance policy. It can be a life insurance agent, financial planner, mutual fund sales person or any other person in the financial services business who is licensed to sell life insurance.
2. An application
   Everyone interested in buying a life insurance policy has to complete and sign an application detailing financial transactions, medical history and other details pertinent to assess the risk the company will be taking when they approve the life policy.
3. Consumer Credit Report
   Applicants for a life insurance policy sign an authorization allowing the life insurance company to obtain information about their credit standing and lifestyle circumstances. Life insurance company underwriters review every factor to ensure a risk is properly assessed.
4. MIB
   Applicants also allow the life companies 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 underwrite the case and assess it properly.

Once approved for insurance coverage, the life company 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 it and if you choose, to cancel the insurance contract and have all premiums refunded to you.