Understanding the Life Insurance Underwriting Process

Every type of insurance policy requires underwriting. That includes home, auto, health, and life insurance. In basic terms, the job of an insurance writer is to look at an application and calculate the risk for the insurance company. In life insurance terms, it’s calculating the risk of how soon the applicant will pass away. Formulas used to determine life insurance risk are based on an applicant's gender, age, and lifestyle.

It's up to the life insurance company which formula they use to determine prices, meaning that rates can vary from carrier to carrier. Completing quotes on multiple websites takes time and can be frustrating. Insurance Best Prices makes comparing life insurance rates easier. Complete a quote request today.

FAQs About Underwriting

How long does the underwriting process take?

The application process is quick and easy on InsuranceBestPrices.com. It can take less than five minutes to complete. Once your application is processed, you will be asked to take a basic medical exam, which typically takes less than an hour. Once your medical exam results are in, they will be sent to the life insurance company’s underwriter to assess risk. It takes up to eight weeks to receive your policy from there. When your life insurance goes into effect varies. It can be once your application is received or when your first payment is made.

What if the underwriting comes across a red flag?

It’s important to be honest in your application and medical questionnaire. The more in-depth and thoughtful your answers the more realistic your quotes will be. The underwriter will run your application and medical exam results through the evaluation process to assess risk. If there are certain red flags like health issues, your premiums will likely be higher on your policy.

Is there a way to speed up the underwriting process?

Accelerated underwriting is an option for people who need life insurance faster or don’t want to wait up to eight weeks for their policy. Accelerated underwriting wouldn’t cost you extra money and shouldn’t increase the cost of your premium. However, you may not receive the same amount of coverage. Learn more about accelerated underwriting by contacting us.