Life Insurance Underwriting

What Does Life Insurance Underwriting Mean?

Life insurance underwriting is a way that an insurance company decides how much your insurance premiums will cost. For life insurance, the company will decide how likely you are to pass away before your life insurance policy ends. The underwriter works for the insurance company. They will analyze your health, lifestyle and medical history to determine the general state of your health and life expectancy for insurance purposes.

What Is The Life Insurance Underwriting Process?

  1. After your application for life insurance is verified and approved, you must participate in a phone interview and paramedical exam. The paramedical exam is a free mini-health checkup with a nurse that works for an exam company contacted by the insurance company. Height/weight, blood pressure, urine and blood draw – it's a very quick appointment at your home. The underwriter will take note of any red flags in your results, from high blood pressure to drug use.
  2. Your health history will be shared between carriers through MIB — the Medical Information Bureau. The underwriter will look for any discrepancies or fraud within your paperwork. They also check the prescriptions you have taken within the last 5-7 years.
  3. The underwriter will then check your driving history to decide whether you pose a high risk of dying in a car crash. Those with a history of wrecks or traffic violations may pay higher life insurance premiums.
  4. Next, the underwriter will compile the information to decide what risk you pose. They decide what your insurance classification (standard, preferred, etc.) is which correlates with the premium (cost) you will pay for the coverage.
  5. Once everything is considered and compiled, you will receive the final decision from your licensed agent and make all final decisions regarding policy issue.

Having someone dig around your medical records can be unnerving, but underwriters do so only to determine your risk and garner an idea of how much the insurance agency should charge for life insurance. Make sure to have the right paperwork, provide accurate information and cooperate with the standard process. If you’d like to purchase a life insurance policy, call RWM Insurance at (888) 254-4640 or fill out our online quote form to get started today.

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Common Life Insurance Underwriting Questions

What Do Life Insurance Underwriters Look For?

Underwriters look at your overall health and any discrepancies in your medical paperwork. They look for red flags that could indicate you have a higher risk of dying before the policy ends. These might include family history, hazardous sports you enjoy, medical conditions such as sleep apnea, using a cpap device, asthma, high blood pressure, elevated cholesterol, diabetes, history of heart disease or an increased risk of strokes.

How Far Back Do Life Insurance Companies Look When Underwriting?

Underwriters may consider medical records from as far back as 5 to 7 years.

How Long Does Life Insurance Underwriting Take?

After applying for life insurance, the process of underwriting can take 3 to 4 weeks. Many insurance carriers provide accelerated underwriting for healthier individuals- this could take less than 1 week to be approved.

If you'd like to purchase a life insurance policy, call RWM Insurance at (888) 254-4640 or fill out our online quote form to get started today. We can identify the best insurance company match for your health history profile, ensuring you will get the lowest rate available with a top-rated insurance carrier.

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