How Does Life Insurance Underwriting Work?

Before you can purchase a life insurance policy, the insurance provider must determine what level of risk is associated with insuring your life. This process is called underwriting and it is necessary for nearly all life insurance policies. If you are unsure about what the underwriting process entails, this article may be helpful to you. 

What is Life Insurance Underwriting?

Through the underwriting process, insurance companies place you into a specific classification based on a number of factors. The classification you fall into will determine the premium payments you must make for your insurance policy. Throughout this process, the underwriter will ask various questions about your age, gender, and health history. Based on your answers, they will have a general idea of what your life expectancy looks like. 

How Long Does Life Insurance Underwriting Take?

The amount of time required to complete the life insurance underwriting process varies from insurer to insurer. While some companies can complete the underwriting process in less than three weeks, others may take up to two months. The process could require even more time if the insurer has questions regarding your application. 

What Steps Are Included in Life Insurance Underwriting?

For most life insurance policies, you must complete three steps:

  • Complete an application
  • Undergo a medical exam 
  • Acquire a physician’s statement

If any of these steps are not completed, you will likely be unable to qualify for a life insurance policy. 

What is Included in the Life Insurance Medical Exam?

The life insurance medical exam is a process that must be completed by a physician. The purpose of the exam is to determine whether you have any physical ailments or other potential health problems that may compromise your life. If your medical exam reveals severe ailments, there is a chance you will be unable to acquire a physician’s statement verifying that you are in good health. This would prevent you from getting life insurance. 

Start The Underwriting Process

If you are confident that you do not have ailments that would prevent you from qualifying, now is the time to start the underwriting process for your life insurance policy. If you need help finding a plan and completing an application, rely on the talented insurance professionals at All Things Insurance to guide you through the process!