What is Underwriting?
- Underwriting is a life insurers term for the time the insurance company is appraising the risk involved in offering you insurance. They take into account your health, lifestyle, and medical history to ensure that the cost of the insurance is proportional to the risk they will assume by offering you coverage.
There are 4 major sections to the “Underwriting” process?
- The first step in the underwriting process is completing an application.
- Once that application is submitted to the life insurance company they will start reviewing it and pulling different records on you such as MIB and DMV records.
- They will review your written/submitted health history information on the application and determine whether an exam is needed, if doctor records need to be ordered, or if supplemental forms are needed.
- After any extra items needed by the underwriter are completed they will provide an approval decision with a rating and death benefit amount.