How does the medical underwriting process work?

So you have applied for a term life insurance policy, and if you are like millions of others, you cannot be approved for the policy until you go through the medical underwriting process. Hopefully, you have a clean bill of health, but what if you don’t? Does this automatically disqualify you from getting approved for a policy?

In most cases, you will not be automatically disqualified from getting a policy if you have medical problems. Of course, this is dependent upon the degree of your medical condition, but in the vast majority of cases you will simply be assigned to a different risk class. Insurance companies use risk classes in order to provide the most appropriate coverage for a group of individuals. If you are in superb health, you will be able to purchase a policy for a cheaper price than you would be able to if you were in poor health trying to take out a policy for the same benefit. You also may be able to purchase a policy with a higher face amount.

The medical underwriting process sounds much more daunting than it actually is. You will have to give the insurance company permission to look at your doctor’s records and you may be required to have blood drawn for testing. Basically, the insurance company needs to make sure that you are in the health that is most appropriate for the premium they are charging you. If companies did not do this, they would be exposing themselves to huge losses.

The insurance companies will also look at possible risks to your health. This includes high-risk hobbies such as rock climbing and sky diving. They will also be taking into consideration whether you are a tobacco user or not. Travel is another factor. If you travel to high-risk countries regularly, you may be denied coverage.

The underwriting process is a necessary one, otherwise how would the insurance companies remain profitable? But as long as you answer questions truthfully, you have little to worry about as the underwriters in charge of your policy will place you in the most appropriate category.

Matthew G Young – TermLifeInsurance.org Expert is a New York State licensed Life, Accident, and Health Insurance agent. He is also the author of The Complete Guide to Investing in Annuities: How to Earn High Rates of Return—Safely. Matthew currently resides in Western New York with his wife and family.