Imagine you are meant to travel for an important business deal to a place you have never been to. Would you rather prepare for this journey or just pack and go. Different personalities are bound to settle on different options. But most people will agree that preparation is important. What is the weather like? What is the destination? How much money do you need to get there? How long will the trip take? These are some of the questions that will help to figure out what and how to prepare.
Signing up for a life insurance policy is like a trip of sorts. You have financial goals that need to be achieved. Understanding this journey as a customer before you take off is very crucial as it prepares you psychologically and financially.
Here is a road map of what the customer journey in a life insurance engagement looks like from start to finish:
1.Policy quotation – After you have identified a product that matches your needs, you will most definitely request a quotation to have an idea of what you need to put in, how much you are likely to earn and in what period. Some insurance providers have calculators on their website to help you through this process. Once the quotation is clear you are meant to fill in a proposal form.
2.Filling the proposal form– The proposal form is the official application for insurance cover. It is also what the life insurer uses to assess your eligibility for cover. It may ask for information such as date of birth, name, beneficiaries, KRA Pin number and your medical history. You will be required to attach documentary proof to some of this information.
3.The Underwriting Process – After submitting the form, it is handed over to a life insurance underwriting department. An underwriter uses the information you provide on the Proposal Form to assess what you need to pay to enjoy the benefits you applied for based on your age, gender, health status and your occupation. These are important factors that help determine the amount of premium you need to pay. For instance, the younger you are the cheaper. The riskier your occupation, the more expensive the premiums are. In most cases, you will be required to pay the first premium installment to activate the policy.
4.Policy document issuance – Once this process is approved, a policy document is shared with you as evidence of a contract. This is essentially the contract document between you and the insurance company. This document usually has all the information about your policy, for example, how long the policy will run (policy term), how much you will get at the end of the saving period or in case of an emergency (sum assured), what the regular payments (premiums) would be like and the terms and conditions of the contract.
5. Free Look period – this is also called a cooling off period. It is the period within which you are allowed to reflect on your choice to take up a policy should you wish to change the product or pass any endorsement including cancellation. The freelook period may vary from 15-30 days.
6. Payment of subsequent Premiums – Now you need to pay premiums as per the contract. Life insurers have very flexible terms i.e monthly, quarterly, semi-annually, and annually. They also have a number of payment options like RTGS(Real Time Gross Settlement), Mobile Money (MPESA) and EFT ( External Fund Transfer), Direct Debits (DDA) and Bank Standing Orders(BSO) among others. Most of these insurers embrace the ‘Strictly no cash policy’ In exchange, you will receive regular updates in form of a statement and anniversary calls.
7. Claim/maturity payment – This is the reason for saving, when your policy has run for the agreed period or your unfortunate demise. The claim payment period depends on the nature of the claim and the provider. Geminia Life insurance takes a maximum of two working days. If a claim requires additional information, the claim may take a few extra days.
Understanding the life cycle of a life insurance contract will help you stay prepared. It is advised to have this conversation with your dependents so that they know what to do in case they need to follow up on your behalf. Don’t let your money go unclaimed in case of the unfortunate event of your demise. If you need to learn more about life insurance processes feel free to DM, Call 0709 551 150 or WhatsApp 0700 053 128.
