7. Underwriting Requirements
The underwriting process will look different for different individuals, coverages, and insurance companies. We’ve listed what could be required, from the simplest to the most complex.
All requirements are completed by brokers and insurance companies, at no cost to the individual.
Remember, also, that for the average person more underwriting is beneficial and will provide lower rates. Why?
First off, the application will ask for your sex and date of birth. Smoking status is also asked.
The most basic underwriting, for “simplified” products, is a small set of “yes” or “no” questions. About 20 questions will ask about major health issues, and if any immediate family member suffered a major health issue prior to a certain age (typically age 60).
All other products will have a longer health questionnaire. Either in the application itself, or through a nurse follow-up call or visit, the applicant will answer a set of questions and must provide details on their medical history, family health history, and any outstanding issues or tests.
Blood and urine
For coverage amounts, typically, of $500,000 or more per person, a nurse will be sent out to administer blood and urine tests.
Vitals / ECG
Due to physical build, or higher coverage amounts (e.g. $1 million or more), vital signs may be checked by a nurse.
Attending Physician Statement
For older applicants, a statement from the applicant’s doctor outlining their health may be requested. In addition, if health history requires further underwriting, a physicians statement may be asked for.
Motor Vehicle Report
For policies, typically, of $2 million or more, a motor vehicle report from ICBC may be requested.
For large policies, an extended financial questionnaire may need to be completed in order to verify the coverage amount is reasonable.
For very large policies, $5 million and up typically, financial information will be looked into by an investigator instead of just self-reported in a questionnaire.