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Is There Life Insurance That Doesn't Require Medical Underwriting?

When you're looking at life insurance options, you'll likely want the best value for the best price. Medical underwriting is one factor that may affect what you pay for your life insurance premium. It involves your health and family medical history and can increase or lower your payments. Let's take a look at how medical life insurance underwriting can affect your policy.

What Is Medical Underwriting?

You've probably already experienced medical underwriting if you have health insurance. Answers to questions like, "Do you smoke?" or "What pre-existing conditions do you have?" when you're applying for insurance may affect your premium. In the case of health insurance, the healthier you are, the less you'll probably have to pay for your premium.

Medical underwriting is a similar process for life insurance. A life insurance company examines the applicant's health and medical information to determine the rate class for the applicant.1 The insurer takes a look at medical history, lifestyle habits, demographics, and other factors related to medical needs.

The insurer may also contact your general practitioner to get medical history details. Some providers may ask you to take a medical examination for an up-to-date look at your health.

After an insurer gathers medical information, an insurance company will use statistical analysis to determine the applicant's rate class and make a recommendation that best fits their situation. In some cases, you could save money by going through the life insurance underwriting process.

How Does Life Insurance Underwriting Affect Your Premium?

Medical underwriting3 is just one part of the entire life insurance underwriting process. Life insurance companies often also look at financial status, such as income or bankruptcy history, during the life insurance underwriting process. These factors help an insurance company provide the best rate based on your unique financial situation.

Other factors that may be examined include:

  • Purpose of life insurance policy
  • Age
  • Amount of death benefit
  • Other insurance policies
  • Occupation
  • Prescription history
  • Credit history
  • Family medical history
  • Motor vehicle accident record
  • International travel frequency
  • Background check

Generally, the more information a life insurance company has to analyze, the more likely the applicant can get a lower premium. Without confirmation that medical history and other factors involving life insurance don't pose a risk, a life insurance company may charge a higher premium to stay protected.

Depending on how high of a risk an insurer determines an applicant to be, a premium may be lower or higher than average. Sometimes, an applicant can be denied coverage altogether.

How Long Does the Insurance Underwriting Process Take?

In some cases, like when medical underwriting is not a requirement, life insurance underwriting may be completed in as little as 24 hours. In others, the life insurance underwriting process can take a few days to several months.

The length of the medical underwriting process for life insurance varies. If red flags pop up in an application, an underwriter may take more time to investigate. Factors like how big of a policy you're taking out may also impact the likelihood of a more thorough investigation into your medical history.

If you are getting a medical examination for your policy, how quickly you set up an appointment and how quickly the insurance underwriter gets the information they need from your physician can all affect the timeline. Also, if any new medical issues come up during your exam, that can also result in a request for additional medical exams.

Is There Life Insurance That Doesn't Require Medical Underwriting?

Yes. It's usually called something along the lines of a "Guaranteed Issue" policy. Anyone is eligible to get this type of policy, regardless of health history or current health status. Read more about life insurance options without a medical exam.

AIG Direct offers Guaranteed Issue Whole Life Insurance, which provides guaranteed coverage for those ages 50 to 85 and offers coverage for up to $25,000, to cover expenses like funeral costs, credit card debt, and medical bills. Contact AIG Direct for a free guaranteed life insurance quote.

Which Life Insurance Is Best for Your Family?

In some cases, applicants can benefit from a thorough life insurance underwriting process, when their health, medical history, and other factors that can affect their premium are in good standing. In other cases, opting for a life insurance plan without medical underwriting may make more financial sense for you and your family.

Life insurance is an important asset in any case since it protects your loved ones when you pass on. Request a free life insurance quote in just minutes with AIG Direct.



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