Life Insurance Underwriting
Many people are under the impression that life insurance underwriting criteria are made in secret backroom discussions, and that underwriters use classified information when it comes to approving new life insurance policies.
While it is true that underwriters are a select group, they are hardly the shadowy figures they are made out to be and the life insurance underwriting criteria they use is pretty standard.
Life insurance underwriting is an invaluable service to a life insurance company that upholds a set of criteria by which a life insurance company is able to provide an individual with life insurance while protecting the company from risky insurance practices.
During the underwriting process, all the answers to the questions you provided on your life insurance policy application are taken into consideration. These along with the results of your medical examination help to determine what rate you will pay if you qualify for a life insurance policy with a particular company.
The underwriting process for a term life insurance policy can take anywhere from three to eight weeks in most cases.
The 10 basic criteria that life insurance underwriting companies use when underwriting new policies are:
- Family History
- Medications you take
- Cholesterol readings
- Blood pressure readings
- Your height and weight measurements
- Your driving record – DUI’s, traffic tickets for speeding could affect your rates
- Medical history and conditions
- Your travel habits
- Hobbies – high risk hobbies such as race car driving or cave exploring might put you in a higher risk category and result in higher rates
- Tobacco use – Most companies will not offer low rates to smokers.
Life insurance companies do not fall into strict guidelines for the criteria they use when writing life insurance policies. Although the above list is pretty standard, there is a wide variety in the charts; meaning that while one company may deny you, another company may work with you offering you a life insurance policy. So you can see the the benefits of shopping around for insurance companies.
Finding the best life insurance underwriting can begin online. Research as much as you can about several companies and they find a qualified life insurance agent to speak to get your life insurance application started.
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