A life insurance underwriter is someone who evaluates the risk of issuing a policy based on many factors, of which the main one is life expectancy. The person making this evaluation used to write their name under the definition of the risk, thus came the title, "underwriter". It is a very difficult job as life insurance carriers have many regulations to follow, they must charge wisely so their company stays solvent, and they must know a realm of health information in addition to being astute financially. Therefore, there are often underwriting teams, including medical doctors, when a life insurance company covers a broad range of risk.
Not only do underwriters look at medical risk, but since 9-11 they also must be sure that the face amount applied for fits the financial means of the applicant, because life insurance can be used by terrorists for money laundering. They look at pharmacy records, driving records, and MIB (Medical Information Bureau).
Some policies do not require any exam or medical records, some skip the exam but still have the option to order medical records, some just order exam and rarely order medical records, and some routinely order both.
All these steps together ensure that the proper rating is given and that the life insurance company will be able to pay all out all its claims.
Life insurance underwriting is the art of collecting financial, medical and behavioral information and integrating a composite picture of the proposed insured. This big picture approach can sometimes create extra credits on the underwriters balance to offset potential debits or health items that may cause the premium price to increase based on the risk to the life insurance company.
Financial justification must be established for the face amount of insurance amount you’re applying for with documentation. Medical information is collected and includes your doctor’s file, prescription history and the results of a paramed exam. These items help develop the mortality risk to the company. Behavior like addictions, motor vehicle violations, dangerous recreational activity and vocational hazards are incorporated into the final decision.
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Not only do underwriters look at medical risk, but since 9-11 they also must be sure that the face amount applied for fits the financial means of the applicant, because life insurance can be used by terrorists for money laundering. They look at pharmacy records, driving records, and MIB (Medical Information Bureau).
Some policies do not require any exam or medical records, some skip the exam but still have the option to order medical records, some just order exam and rarely order medical records, and some routinely order both.
All these steps together ensure that the proper rating is given and that the life insurance company will be able to pay all out all its claims.
Financial justification must be established for the face amount of insurance amount you’re applying for with documentation. Medical information is collected and includes your doctor’s file, prescription history and the results of a paramed exam. These items help develop the mortality risk to the company. Behavior like addictions, motor vehicle violations, dangerous recreational activity and vocational hazards are incorporated into the final decision.