Even if you have never heard of the Medical Information Bureau, it has likely heard about you. It is a member-owned, not-for-profit organization that collects histories on applicants and shares that information with insurance agencies so they can make informed decisions about who to insure and how much to charge for that coverage. Their services are for both life insurance agencies and consumers. Here is how the MIB save you money:
1. It makes insurance easier to get
Many insurance companies have made it easier and quicker to get life insurance. They no longer ask candidates to take physicals which can be expensive. Instead, many times the insurance company can find out what it needs to know about you through the MIB.
2. Weeds out high-risk candidates
Insurance is affordable when insurance companies can minimize risk. No matter what life insurance company you choose you must meet certain requirements before you can buy a policy.
Even if you don’t have to take a physical, you will need to tell about your medical history, work history and tell about any risky activities that may make it harder for you to qualify. For example, if you spend your weekends riding angry bulls at the rodeo, you life insurance company will want to know.
If you are thinking of forgetting a few details – don’t. The MIB keeps extensive coded files and will alert the insurance company of any errors, omissions or misrepresentations it finds on your form. If the MIB’s information doesn’t match what is on your application, the insurance company cannot automatically turn you down. They must do a more extensive background check to see who is right. If the MIB has erroneous information, then the company lets them know so they can update your records.
3. The MIB offers a policy-locator service to consumers
If a loved one has died and you believe that you may be a beneficiary of a long-lost life insurance policy, you may contact the MIB. They can search their vast data bank for the information for you, saving you time and money on an otherwise difficult search.
When you apply for life insurance, you may not be aware of the role that the MIB will play in helping you to get the cheapest policy possible but they are behind the scenes working for you.
