What underwriting is
After you apply, the insurer assesses how likely it is to pay a claim, and sets your price to match. The result is a health class, such as preferred or standard, which determines your premium.
The steps
- Application. You answer questions about your health, lifestyle and the coverage you want.
- Records check. With your authorization, the insurer may review prescription history, the Medical Information Bureau (MIB) and motor vehicle records.
- More information, if needed. Some applications need a short phone interview, medical records from your doctor, or a medical exam.
- Decision. The insurer approves the policy as applied for, offers it at a different price, postpones it or declines it.
- Offer and delivery. If you accept, you pay the first premium and your coverage begins.
Types of underwriting
Accelerated
Uses data instead of an exam for eligible applicants. Decisions can come in minutes.
Simplified issue
A short set of health questions and no exam. Common for smaller policies.
Full underwriting
May include an exam and medical records. Takes longer, and is common for larger amounts.
Guaranteed issue
No health questions. Acceptance is guaranteed, with a waiting period and a higher price.
How long it takes
Decisions are often made in minutes. It can take a few days, and sometimes longer, when an application goes to an underwriter for review, when the coverage amount is high, or when medical records or an exam are needed.
How to keep it moving
- Have your doctors' names, medications and dates of any diagnoses ready.
- Answer every question completely and accurately.
- Reply quickly if the insurer asks for more information.
Frequently asked questions
Will I need a medical exam?
Often not. Many insurers offer no-exam options for eligible applicants. The insurer may still ask for an exam or records before approving coverage.
What if my offer costs more than my quote?
Quotes are estimates. If underwriting places you in a different health class, the price changes. You can accept the offer, decline it or compare other insurers.
What happens if I leave something out?
Leaving out or misstating information can lead to a higher price, a canceled policy or a denied claim. It is always better to disclose.
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