A free nz community service
Application Process
More complicated than you think.
In the past a person could complete a simple form at the Bank, answer some questions, tick some boxes and within moments could have insurance in place. Today it is not quite so simple - and that is good.
The General Rule with insurance is:
The easier it is to put in place, the more difficult it will be at claim time.
The more thinking, analysis, options considered, information provided, medical examinations, blood tests, and forms completed, that are done, Before the policy is put in place, can mean better insurance, cheaper insurance, and no problems at claim time.
With most Registered Financial Advisers, they start with an initial Needs Analysis process to understand the current and future needs of the client. That needs analysis is then taken away and various options, usually from a range of insurance companies, is produced. It is often not understood by the General Public that "One" Insurance company will not have the best options for everyone - all the time. Different insurance companies can be stronger in particular age groups or sectors of the population. That is why the Free services of an Adviser can prove invaluable in obtaining the best overall packages.
After the Needs Analysis
And consideration of Options
An Application is usually completed. Depending on the covers applied for, this can take from 1-2 hours, and is often completed in the client's home or office.
The application is then sent to the Insurance Company and to the Underwriter. The process of Underwriting can take 30 minutes (clean skin no problem application), to months, when a complex application is received requiring lots of additional information, which could be financial reports or multiple medical tests or reports.
Once Underwriting is completed, the application could be Accepted or Accepted with terms (Offer of Terms), or Deferred to a later date. If Offer of Terms is produced, these terms need to be fully explained to the client and signed off by the client.
Once the Underwriter, Adviser, and Client are all happy, then the policy is put in place. This is normally done by the New Business Department Administrators.
A Policy Document is then produced and sent to the Client - often by both Email and Mail.