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The Quote Process Explained

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Back..  Underwriting Explained

 

Obtaining life insurance is unfortunately, not always as swift and straightforward as purchasing other types of financial product. 

When you apply for a life insurance or critical illness policy it is sometimes necessary to go through the process of underwriting.  This process is carried out by the insurance provider you have applied to and is a means by which they determine whether to offer you insurance cover at all, and if so, at what price.  This can make it a drawn out process but it is important to understand the decision making that goes on behind the scenes.

The underwriting process essentially consist of three steps; an examination of the application; a decision as to whether to insure; and determination of the premium.
Any person applying for life or critical illness insurance is obliged to supply key information about their health, lifestyle, and occupation and for larger policies their financial situation.  This allows the insurance provider to properly evaluate an applicant’s suitability for coverage.

By and large, most applications that are referred relate to people with health problems.  In these cases, the underwriters will seek first your permission to obtain medical records and will then request a GP report, a medical examination, and further information from you or sometimes all of the above.  In any instance, it is vital that the applicant signs any authorisations, provides information requested either in writing or via a tele-interview, and attends appointments requested by the insurer.  In doing so, you will significantly speed up what could otherwise be a lengthy and arduous process.

The insurer is dependent on you for complete disclosure so it is of utmost importance to answer all questions as fully and as accurately as possible. Any omissions - whether intentional or not - may lead to a serious delay or even non-payment of any life insurance or critical illness claims made against the policy in the future.