The Truth about Medical Underwriting

Don’t let anyone confuse with the jargon “medical underwriting.” In fact, anytime you hear that word, have in mind that it means the procedures used by insurance companies to assess the medical status of their clients. This includes checking your medical history, examining your blood pressure and knowing whether you drink alcohol or take cocaine, marijuana and other unhealthy products. Another related term you should not forget is a “medical underwriter.” As you can guess, it means a person who performs medical underwriting.

That said – if you don’t know, now you know –insurance service providers make their profits by reducing risks associated with providing coverage. To say it another way, they don’t want you to die before your coverage expires so that you won’t get any death benefit from them. And even if you will die before your coverage ends, insurance companies want to make sure that they the premium they will charge you is sufficient to cover your death benefit. So if you have any terminal diseases or if you are likely to die soon due to your occupation or lifestyle, there is no way two ways about it – you will pay premiums to get the right health insurance coverage. Some insurance companies may even deny you coverage if they think insuring you is too risky.

What’s more, not all medical underwriting is the same. Some insurance companies carry out what is known as full medical underwriting, a thorough medical examination, to understand the risks they are getting into. This in-depth examination encompasses cognitive test, resting electrocardiogram (ECG), credit report, inspection report, Motor Vehicle Report (MVR), and Medical Information Bureau Report (MIB) At times, they may just perform a superficial medical checkup known as moratorium medical underwriting by collecting your urine samples and examining your blood pressure, weight, and lifestyle.

So, don’t be scared anytime you hear the term medical underwriting. Your insurer just needs to do the medical underwriting with the aim of knowing what premiums to charge and whether you are qualified for the life insurance coverage.