Why is an Applicant’s Signature Required on a Life Insurance Application?

Shawn Plummer

CEO, The Annuity Expert

Signatures are required on life insurance applications for a couple of reasons. The first is to confirm the applicant’s identity. We want to make sure that they are who they say they are, and this can be done through their signature. If someone is submitting an application for you without your knowledge, then there would be no way of confirming that it was really you since you can’t sign anything with your name if it isn’t yours! Another reason why signatures are required on life insurance applications is that we need proof of an agreement between the parties involved in the transaction. This helps protect both sides from not understanding what is being agreed upon or not agreeing at all.

Disclosure Authorization

A producer is responsible for informing an applicant about the many sources from which the insurer will obtain information regarding his or her insurability.

Applicants for insurance in almost every state are required to be given advance written notice of an insurer’s policies regarding the gathering and usage of personal information related to insurance transactions.

Disclosures of personal information require a written authorization form that states who has permission to disclose personal information, what types of data may be shared, why the information is being collected, and how it will be used.

The applicant’s signature on the disclosure form authorizes the insurer to collect and distribute information in the manner specified in the notice.

The authorization is only good for a certain length of time. Another authorization must be obtained at the conclusion of this period.

Agent’s Statement

Many life insurance policies require an agent’s statement to be filled out and submitted as part of the application. This generally includes information relating to the agent’s connection to the proposed insured and general knowledge about the proposed insured’s financial status, habits, moral character, and any other information that may be relevant to the risk being covered by the insurer.

The applicant and the agent’s signatures are often required at the time of application completion.

Required Signatures

To complete a life insurance application, you must provide several signatures. Required signatures include:

  • the applicant
  • the proposed insured (if different from the applicant)
  • the agent soliciting the insurance.

Things To Consider

  • One or more of the partners or officials must sign the application if the policy is owned by a corporation.
  • A minor may not sign for a juvenile policy; the guardian must do so.
  • The agent’s report must be submitted and signed by the agent.
  • The Notice to the Applicant, which is required by the Fair Credit Reporting Act (FCRA), should be completed with the appropriate signatures.

Modifications

Any modifications or changes to the policy, or any agreement related to the policy, such as a change in the beneficiary or coverage amount, must be officially recorded by signing or initially and dating.

who is not required to sign a life insurance application

The beneficiary is not required to sign a life insurance application as they do not own or own the policy.

Conclusion

Signing your life insurance application is an important step in the process. It helps to confirm the identity of the applicant and it also confirms that both parties agree to the terms of the policy. If you have any questions about signatures or anything else related to life insurance, please don’t hesitate to reach out to us for more information. We would be happy to help you navigate through this process and find a policy that fits your needs. Click below for a free quote on life insurance!

Why Is An Applicant'S Signature Required On A Life Insurance Application?

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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