Underwriting
Underwriting is the process of an insurance company deciding how much coverage it will provide and how much the customer will pay for the coverage. The underwriting process determines the risk of a person dying while they are covered by the policy. There are many factors that go into the underwriting process including, age, current and past heath, family medical history, occupation, activities and driving record.
The insurance application is the first step in the underwriting process. Depending on the amount of coverage applied for and the age of the person applying for the coverage, the application may include questions regarding all of the areas above. The larger the amount of insurance applied for and the older the applicant, the more questions will be asked in the application. The application may also provide the insurance company to contact your doctor to get information regarding your health and a pharmacy database regarding any prescription drugs you have taken.
In addition, a medical exam may be required. This is usually a simple exam by a paramedic to check blood pressure and take blood and urine samples for further analysis. However if a very large amount of coverage is requested, a full medical exam including heart stress test may be required.