When you apply for life insurance, you might undergo a rigid process before the company determines whether to cover you. The dreaded life insurance underwriting process looks for more than the premiums you can afford. It identifies and weeds out risky applicants, too.
Medical Profiles, Inc. provides mobile and in-office paramedical exams. These exams are an integral part of obtaining coverage. We demystify the underwriting process below to shed light on navigating it.
What Does Underwriting Mean?
When you apply for life insurance, you’ll undergo an underwriting assessment. An underwriter working for the insurance company gathers data about your habits, current health, and medical history to identify potential risk factors. If the risks make coverage a liability, the insurance company denies your application.
It’s understandable if the life insurance risk evaluation seems unfair or intrusive. However, looking at it from a business perspective, you notice insurance companies must weigh the risks and benefits of covering each applicant. If a candidate has too many risk factors against them, they could cost the company more than their premiums are worth.
Yet, many people with substantial risk factors can find coverage or improve their options. Understanding what underwriting examines will help you strategize how you apply for coverage.
What Does the Life Insurance Underwriting Process Entail?
The life insurance underwriting process includes the following steps:
- You apply for coverage. Respond to each application inquiry honestly and thoroughly.
- You undergo a paramedical exam. Examiners like Medical Profiles, Inc. will ask questions about your current health status, family medical history, and lifestyle habits. Then, they will physically examine you and perform tests.
- The underwriter analyzes your application. They will compare your application and exam results against their coverage allowances to determine your candidacy.
- The underwriter classifies your application. Applicants fall into one of five categories ranging from preferred plus or substandard. The better your health, the lower your premiums and the more generous your coverage.
- You receive a notice of approval or denial. If the company has a policy that covers your health status, they’ll approve your application. Otherwise, you’ll receive a letter of denial.
Understanding Your Role as the Applicant
When you apply for life insurance, you should consider how the following will influence your medical underwriting:
- Substance use: Tobacco, alcohol, and other substances can negatively impact your health and lifespan. If you stop using these substances, you can significantly improve your future health and coverage options.
- Weight and diet: If you struggle to maintain a healthy weight, work with your doctor to create a safe, effective diet plan. Being over or underweight can create health issues that shorten your life.
- Exercise habits: Daily exercise improves your weight management efforts and prolongs your mobility and quality of life. Good exercise habits will reflect on your paramedical exam.
- Family medical history: If your family has a history of specific health problems, like heart-related conditions or diabetes, they may affect your future health. Work with your doctor to mitigate those potential problems now.
- Current condition management: Some applicants struggle with present health conditions that diminish their insurance options. However, proper management practices that prevent hospital visits can make a candidate more attractive.
You should also consider how financial underwriting factors will affect your application. Financial underwriting covers things that don’t necessarily affect your health but could impact your lifespan. For example, criminal history, dangerous hobbies, and high-risk careers can also affect the underwriting decision.
Choose Medical Profiles, Inc. for Flexible Paramedical Exams Near You
You have more control over the life insurance underwriting process than you think. Healthy decisions and medical advice can increase your options within a year or two. Take more control with mobile paramedical exams from Medical Profiles at 832-251-3926. Learn more now.
