Life Insurance Accreditation
Many life insurance agents and brokers have accreditations offered by industry agencies such as the American College of Financial Services1 and The Institutes2 (formerly the Insurance Institute of America). Some of the common acronyms you might come across include:
- CLU—chartered life underwriter
- CFP—certified financial planner
- FSCP—financial services certified professional (this replaced the LUTCF, or “life underwriter training council fellow” designation)3
If an agent or broker you’re considering working with has a designation (or designations) you don’t understand, be sure to ask what the acronym stands for, which agency issued it, and how they earned it.Buying Life Insurance During COVID-19
The COVID-19 crisis has introduced some new challenges to the life insurance industry. For one, in-person exams are difficult, if not impossible, when people are supposed to be social distancing. Still, life insurance companies are open for business, accepting applications, and adapting their client onboarding procedures to accommodate the evolving landscape.
Some insurers, for instance, have shifted to evaluating medical records, prescription history, and the like—as opposed to sending a paramedical professional to your home to gather information. Others have extended the time frame for completing a traditional exam, while providing temporary, interim coverage. You can also connect with agents via phone or video conference and sign any documents electronically.
Don’t be surprised if you see some questions on your application, such as “Have you or has someone in your household been tested or treated?” or “Have you been on a cruise during the last 60 days?” Keep in mind that if you answer “yes” to these questions, it shouldn’t prevent you from getting a policy—but if you answer dishonestly, it could void your policy later.4