What underwriting is
Underwriting is the process an insurance carrier uses to decide whether to offer you coverage, and at what premium. The carrier makes that decision. An agent helps you apply and explains the result, but does not approve or decline applications.
What carriers usually look at
Age, health history, current medications, height and weight, tobacco use, and family medical history. Many also consider occupation, hobbies that carry risk, driving record, and the amount of coverage requested compared with your income.
The steps, in the usual order
Application. You answer questions about yourself, your health and the coverage you want.
Interview. Some carriers follow up with a phone or online interview to confirm details.
Exam, if required. Some policies require a brief medical exam, often at your home or workplace, which may include measurements and blood and urine samples. Others rely on health questions and records alone.
Records check. With your signed authorization, carriers may review prescription history, medical records, motor vehicle records and information held by MIB, an organization that insurers use to help detect errors and omissions on applications.
Decision. The carrier approves the application as applied for, approves it at a different premium, postpones it, or declines it.
How long it takes
It varies widely. Some applications receive a decision within minutes or days. Others take several weeks, especially when the carrier requests medical records from a doctor. Your agent can tell you where an application stands.
What the result can look like
Carriers place approved applicants into rate classes, which set the premium. If the offer is different from what was quoted, you can ask why, and you are not obliged to accept it. If an application is declined, you have the right to ask the carrier for the reason.
How to make it go smoothly
Answer every question completely and truthfully. A misstatement on an application can lead a carrier to reduce or deny a claim later, which defeats the purpose of buying the policy.
Have a list of your medications, your doctors and the dates of any significant diagnoses or procedures ready before you start. If an exam is scheduled, follow the instructions you are given beforehand.
Product availability varies by state and carrier. All coverage is subject to carrier underwriting and approval; features, premiums, exclusions and riders depend on the specific policy. This article is general education, not a recommendation for your situation. DNA Life & Legacy and its agents do not give tax or legal advice. Please consult your own tax or legal professional about your situation.