Underwriting is the process insurers use to evaluate your risk and determine your premium. Understanding each step helps you prepare properly and avoid surprises that could delay or complicate your application.
The entire process typically takes two to six weeks for medically underwritten policies.
Application Review
The process begins with your application, which asks detailed questions about your health history, lifestyle, occupation, income, and the coverage you’re seeking. An underwriter reviews this information alongside data from third-party sources.
Be thorough and honest — discrepancies between your application and medical records raise red flags.
Medical Information Gathering
The insurer will order your medical records from doctors you’ve seen in recent years, check the Medical Information Bureau (MIB) for any previous insurance applications, and review prescription drug databases. Your paramedical exam results are also factored in.
This comprehensive data collection creates a detailed picture of your health risk.
Risk Classification and Decision
Based on all gathered information, the underwriter assigns you a risk class and calculates your premium. You may be approved as applied, approved with a higher rate, or declined. If you’re declined, you can request the reason and consider applying with a different company that may view your situation differently.
Some applications receive counter-offers with modified coverage amounts or premium rates.