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How Does Underwriting Work for Whole Life Insurance?

An underwriter evaluates your application on behalf of the insurance provider. The underwriting process takes place after you submit your insurance application with your necessary details. Through this process, the underwriter determines your coverage entitlement by assessing your medical history and finances.

Certain insurance products have a more lenient underwriting approach, as Gary P. Cubeta associated with Insurance for Final Expense highlights in his Prosperity of Life reviews. The two broad areas that underwriters assess before qualifying you for whole life insurance coverage include:

  • Confirming that the coverage amount you seek is in sync with your purchasing power and family needs.
  • Determining the presence of risk factors (lifestyle choices and medical conditions) that could potentially shorten your lifespan.

Influential Factors

The higher the risk you pose, the steeper your insurance coverage. Underwriters take a keen interest in the listed factors to assess the extent of risk the insurance provider is taking on by insuring you:

  • Your age as the younger you are, you command a more favorable rate
  • Any chronic or recurring illnesses in your family and your current mental and physical health, inclusive of your weight
  • Consumption of alcohol, drugs and if you are a habitual smoker
  • Dependence on prescription medications
  • The risks involved in your profession 
  • Driving and criminal records

The Underwriting Process

Across insurance carriers, the underwriting process may vary slightly but, the final intent remains consistent. It generally takes a few weeks to complete the entire process depending on the extent to which the underwriter conducts such evaluations. 

Certain life insurance policies are willing to take on policyholders with maximum health risks, as Prosperity of Life reviews reveal. To help you understand the process better, enumerated here are the steps involved in whole life insurance underwriting:

Reviewing Submitted Application

The underwriter makes sure that you fill out your application entirely with no questions left unanswered. It is worth being honest while entering your details if you want your application to be accepted. 

Once an underwriter uncovers the truth behind your fudged application, you may have to contend with higher premium rates. Should an underwriter need clarity on any aspect, they directly initiate a conversation with you to fill the gaps.

Conducting Paramedical Examination

At your convenience, a visit by a medical technician is organized at your residential or official location to examine you for health issues. Your blood pressure and body mass index are routinely recorded during such examinations. Sometimes, a urine or blood sample is taken to confirm the use of any banned substances.

Corroborating with Your Doctor

Your family doctor or personal physician is approached by the underwriter to verify the inputs collated after your paramedical examination. If there is any additional information required, the same is sought from your primary care physician.

When your doctor shares positive inputs about working hard to improve your overall health, it works in your favor. Facts regarding you being determined to lose weight, quit smoking, and following your doctor’s advice positively influence the underwriter’s final evaluation.

Checking With Medical Information Bureau (MIB)

MIB is a professional body that shares medical information about you with insurance carriers that approach them. The underwriter representing an insurance provider needs to cross-check if any company has rejected your life insurance application earlier. 

If yes, the reasons for turning down your application are closely examined. Similarly, the information you currently provide is evaluated against your previous applications. Any inconsistencies immediately raise a red flag, signaling potential fraud.

Reviewing Prescriptions

By reviewing your past and present prescriptions, the underwriter gains a clearer understanding of any existing chronic conditions or past medical complications. Failing to make a mention of such prescriptions in your application can work against you.

Assessing Motor Vehicle Report

Should you have any past driving convictions, traffic violations, or been held responsible for road accidents, your motor vehicle report will reveal the same. An underwriter assesses if you are prone to speeding or driving after having consumed alcohol or drugs from these disclosures.

Assigning Credits

After collating all the information gathered on you, the underwriter assigns credits. To better your chances of seeing your application through an affordable premium, you need a high final rating. 

A lower ranking makes you a high-risk applicant as the insurer does not credit you with a longer life expectancy. If your application is accepted, you likely have to pay high premiums with a low credit score. The other option is to approach insurance providers willing to cover high-risk individuals.

Consult with a renowned independent insurance agency known to study the market and refrain from applying pressure tactics closely.

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