First things first—to get insured, one needs to get an application from the insurance company. The applicant then fills out the form, signs it, and returns it for consideration.
It is often required that the applicant be physically present in front of the agent while the questions are being filled out on the application.
The information provided in the application form gives the underwriters of the insurance company a basis for determining if they will issue a policy.
Parties involved in an Insurance Application
There are three parties relevant to an insurance application, namely:
The Proposed Insured – This is the person whose life is being insured by the life insurance policy.
The Applicant – This is the person applying to the insurance company for life insurance and may or may not be the proposed insured.
The Policy Owner – This is the person that usually pays the premiums and the person who retains all rights to any values or options contained in the policy.