Underwriting is one of those words that may mean nothing to people outside of the life insurance industry. But it’s time to pull away the curtain and get rid of the myths surrounding the subject.
What is underwriting? And what does an underwriter do?
Insurance underwriting is the process of evaluating the risk in a particular policy. An underwriter analyzes all the information available to them and tries to calculate whether the situation is viable for insuring and, if so, how expensive the premiums would need to be to make it work for both the insurance company and the prospective client. The basic health questions cover key factors – they checkboxes regarding your activity, age, location and more, and they can all be used by a computer to find appropriate cover. But sometimes, there’s something unique about a person which just needs a little personal touch to their policy.
How long does the process of underwriting take for life insurance?
Underwriting is typically quite a quick process – and often takes little more than a phone call. E.g., “I have a client who regularly does bungee-jumping,” one might say, “how might this affect her premiums?” – and the underwriter quickly comes with a decision, that usually goes one of four ways:
- No change
- A premium increase
- An exception
Insurance underwriting helps keep everything fair. Without it, all policies would be handled on a flat basis, which would generally mean more expensive for everyone! It’s not just life insurance, of course, critical illness cover and income protection are both subject to the expertise of an underwriter and if you have a particularly unusual or unique history and lifestyle, it may require an in-depth underwrite!
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00