What Does LexisNexis Have to Do With Life Insurance?

When you apply for life insurance, you probably expect to answer questions about your age, health, medications, occupation, and lifestyle. But many people are surprised to learn that insurance companies may also use information from outside data sources to help evaluate an application.

One of the companies you may hear about during the underwriting process is LexisNexis.

What Is LexisNexis?

LexisNexis Risk Solutions is a data and analytics company that provides information to businesses, including insurance companies. Depending on the insurer and the type of policy being applied for, information from third-party databases may be used as part of the underwriting process.

This doesn't mean LexisNexis decides whether you receive life insurance. The insurance company makes the underwriting decision. Data and reports are simply tools that may help an insurer evaluate an application.

Why Do Life Insurance Companies Use Data?

Traditionally, applying for life insurance could involve a lengthy application, medical examination, blood and urine testing, medical records, and several weeks of waiting.

Technology has changed that process.

Today, some insurers use electronic records and third-party data to help verify information and evaluate risk. Depending on the company and the applicant, this can sometimes help make underwriting faster and may reduce the need for additional medical requirements.

Information considered during underwriting can vary significantly from one insurance company to another.

What Type of Information Might Be Reviewed?

Depending on the insurer and applicable laws, underwriting may involve information such as:

• Identity and application information
• Prescription history
• Motor vehicle records
• Public records
• Previous insurance application information
• Certain consumer or risk-related data

Not every company uses the same information, and not every applicant goes through the same underwriting process.

Why Accuracy Matters

One reason consumers should understand this process is that incorrect or outdated information can potentially create problems.

For example, an applicant might answer every question accurately but a third-party report could contain information that needs clarification. That doesn't automatically mean an application will be declined, but the insurance company may request additional information.

This is one reason working with an experienced life insurance professional can be valuable. If underwriting raises questions, the agent can help the applicant understand what the insurance company is requesting and what additional documentation may be needed.

Different Insurance Companies Can Reach Different Decisions

Life insurance underwriting isn't identical from company to company.

One insurer may view a particular medical condition, prescription, driving history, or other risk factor differently from another insurer. Their underwriting guidelines, products, and pricing can vary.

That's why receiving an unfavorable decision from one company doesn't necessarily mean that every insurance company will reach the same conclusion.

Can You Review Information About Yourself?

Consumers have rights regarding certain consumer reports used in insurance decisions. If information in a consumer report is inaccurate, there may be procedures available to obtain a copy of the report and dispute incorrect information.

If an insurance application is adversely affected by information from a consumer reporting agency, the applicant may also receive information explaining certain rights and how to contact the reporting agency.

The Bigger Picture

Modern life insurance underwriting is increasingly driven by technology and data. For many applicants, that can mean a faster and more convenient application process.

But technology doesn't eliminate the value of professional guidance.

At Black Apple Group, our goal is to help clients understand not only which life insurance options are available, but also how the application and underwriting process works.

Life insurance shouldn't feel like a mystery.

The more you understand the process, the better prepared you can be when making decisions about protecting yourself and your family.

Ready to Explore Your Options?

Whether you're considering term life, whole life, universal life, mortgage protection, or another life insurance strategy, Black Apple Group can help you review your options and understand the underwriting process.

Get a free life insurance quote and learn what options may be available to you.

This information is provided for educational purposes only. Underwriting requirements, data sources, eligibility, rates, and policy features vary by insurance company and individual circumstances.