Types of Underwriting Used in Life Insurance
by Radhika Pawar creative content writerSaving on life insurance is no longer a hassle as was the case a couple of years ago. Nowadays, you can compare life insurance quotes online from the comfort of your home and find the cheapest deal possible. Not only does this save you money, but you also don’t have to eat into your precious time.
Once you gather your quotes and you’ve chosen an insurer that fits your budget and needs, it is time to apply for a life insurance policy. However, the application process varies depending on the type of underwriting used. Below are some of the most notable ones.
Full Underwriting
This is the traditional underwriting process that requires you to fill out a lengthy questionnaire. You actually need to take a life insurance medical exam and give the insurer permission to gather information about you from multiple third-party sources. It might take about 60 days to complete the entire process, but this will likely result in the lowest life insurance quote if you happen to be healthy. After all, the insurer has enough information to price the policy accurately.
Accelerated Underwriting
This process is quite similar to full underwriting but doesn’t necessarily require a medical exam. The good thing about accelerated underwriting is that its faster since it uses data modeling to assess the risk of applicants. In most cases, you can apply online and the insurer will instantly gather data from third-party sources.
Simplified Issue
Buying simplified life insurance tends to be fast and easy. All you have to do is answer a few questions about your health and lifestyle, after which the prospective insurer will use third-party sources to gather additional information about you. Since no medical exam is needed, insurance companies can make immediate decisions about whether to accept or reject applicants.
Final Thoughts
Before making up your mind to get and compare life insurance quotes online, it is in your best interest that you understand the underwriting used. Hopefully, this simple guide will come in handy when you want to buy life insurance policy.
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Created on Feb 2nd 2022 04:09. Viewed 190 times.