What is Life Insurance Underwriting?
Complex equations are factored in to determine risk class and premium levels.
Life insurance carriers offer a variety of products to accommodate different needs and risk classes. Each type of product offered has different risks, as does each individual policy issued. The Life Insurance Underwriting process is used to determine the risk class for each case referred to as underwriting. Therefore, each of the carriers’ products may have varying degrees of underwriting to measure specific risk for each case.
There are 3 general life insurance underwriting levels:
More stringent life insurance underwriting rules are designed to offset some of the financial risk to the carrier. For instance, with high risk cases and high dollar payouts, underwriting is more rigorous. These types of policies are “Fully underwritten”. The carrier may require a full medical exam and will often times investigate the insured’s family history to determine the likelihood of long term health.
Other types of policies have more liberal underwriting processes required for eligibility, like “simplified issue“ policies. Ultimately, this is often how Final Expense insurance is underwritten.
The most lenient of the underwritten policies are referred to as “guaranteed issue”. Guaranteed Issue policies are issued in spite of high risk ailments that shorten life spans, like cancer, HIV, heart disease, etc.
While insurance is the transferring of risk, the risk to the insurer can be mitigated with thorough underwriting. A great Field Underwriter will assess your health to determine if you qualify. If the Field Underwriter has multiple carrier options, they’ll assess your health and determine the type of underwriting requirement that is best based on your needs and the lowest premium.
Insurance brokerage, like Pivotal Insurance, has a range of carriers and products with varying degrees of underwriting to assist you in a vast range of health. No matter your health, you should know which life insurance product you best qualify for by speaking with a field underwriter today.
To learn more or if you have any questions, we’re here to help. Reach out at 561-412-5500 or Pivotal Insurance.
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About Pivotal Life Insurance
Pivotal Life Insurance is a family owned, independent insurance agency that focuses on income protection and family security through Life Insurance products (Term Life, Whole Life, Final Expense), Mortgage Protection and Annuities. With a range of product offerings, we accommodate the varying needs of our clients through resources provided by the nation’s top rated carriers. Although we are headquartered in South Florida with a branch in Maryland, we service most of the United States as our agents are licensed throughout the country. Pivotal Life Insurance is one of the fastest-growing agencies and we pride ourselves in putting you, our customers, first.
Insurance Is Pivotal. Cherish what’s important.
For more information or if you’d like to join the Pivotal family, visit www.insuranceispivotal.com or call at 561-412-5500.