lif enet insurance.co m http://www.lifenetinsurance.com/blog-0/bid/57802/Life-Insurance-Underwriting

Posted by Lenny Robbins on Fri, Mar 04, 2011 @ 04:52 AM

Life Insurance Underwriting

When you apply f or a lif e insurance policy your f ile will bereviewed by an underwriter at the insurance company. Allinsurers have lif e insurance underwrit ing guidelines to f ollow. Each company has slightly dif f erent standards. Anindependent lif e insurance agent should be generally awareof how each company treats the main underwrit ing concernsoutlined below.

During the f irst review, the underwriter will evaluate yourmedical history, f amily medical history, paramedic exam andlab results. Here are some important f actors that can af f ect your rating:

Height and weight

Your medical conditions

Your medications

Parents or siblings who died of cancer, heart disease, or with some carriers diabetes bef ore the age of60

Your lif estyle- do you participate in extreme sports? How is your driving record? Do you have a historyof alcohol or drug abuse?

If the insurance company f eels that more inf ormation is needed f or a decision, they will order records f romyour physician and/or hospital records. You may have to complete a questionnaire, or an interview. It is veryimportant to be honest on your application and any f ollow up questioning. If the insured dies during the f irsttwo years of a policy, the carrier can deny a death claim f or f raud in the application.

When the additional inf ormation is received, your f ile will go back to the same underwriter f or review. Hopef ullythe questions are answered f ully and underwrit ing can be completed. Lif e insurance underwrit ing can be verycomplicated. Multiple medical issues can be dif f icult to underwrite.

What happens if the outcome is not f avorable? This is where using an independent lif e insurance agent canbe especially benef icial. As they represent many carriers, they can approach other insurance companies f orquotes. In addition, some agents have access to an in-house underwriter who can review the f ile and assist inplacing the case at the proper insurer. They same exam can be used; all that is required is a new application!

Important Point : Every company has dif f erent underwrit ing guidelines and an independent agent can get youto the right carrier f or your best value.

To learn more about term lif e insurance....

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