What Is Medical Underwriting? If you have health or life insurance you probably might have heard of the world medical underwriting. If you do not know what medical underwriting is then you are on the right at good today because that is exactly what we are going to be taking a look at. Medical underwriting is an insurance term and today we are going to know everything about it.
Medical underwriting is a very important step when it comes to insurance which is why I need to understand what it means if you are going for life or health insurance. Because it is what is going to determine your insurance premium and eligibility and how cheap or expensive Your insurance is going to be in the long run.
What Is Medical Underwriting?
Medical underwriting is a process where an insurance company basically evaluates the application of an applicant for either health or life insurance by examining their medical history. This is because the price of the insurance coverage is going to be directly determined by the medical history of the patient so it is a very serious factor that the insurance company considers.
One of the major reasons why so many people get denied insurance health and life coverage is a result of the medical underwriting revealing certain conditions that exclude These people from getting the necessary coverage they want. Or they only get the coverage offered at only a very high price as a result of their medical condition.
How does Medical Underwriting Work
Medical underwriting is one of the ways in which insurance company used in minimizing the risk to them and to assess your suitability for coverage so that they do not lose money. Medical underwriting is required when you are applying for life. health insurance or disability income insurance, critical illness insurance. Which are basically not afford insurance.
When did happen the insurance company is within its right to evaluate your medical information including other medical information they can gather about your health. Some of the information is gotten from your application and others from what they can gather such as your age and other things and then determine if you are eligible and also the price of your premium.
What are the results from a medical underwriting
After a medical underwriting procedure has been done when you apply for any of the insurance policies listed above they are basically 3 outcomes or results.
- Adjustment of premium – When the medical underwriting has been done and the company deems you to be a high-risk customer as a result of your medical information then they are definitely going to increase the price of your premium. This is when you will be offered higher than the standard premium rates that people pay for that company.
- Ineligibility – If there are specified medical pre-existing conditions that you have the company is going to find out after the medical underwriting and then you might be excluded from getting insurance coverage. This is because the insurance company does not want to lose money and you will be excluded as a result of these conditions.
- Lower benefits or longer elimination period – Finally your benefit will be lowered or you will have a longer period in which you can be eliminated from the insurance policy.
These are the only three possible outcomes that can come out from a medical underwriting procedure when you apply for life or health insurance.
Types of Medical Underwriting
In the medical underwriting process, they are basically three ways a medical underwriting can be conducted. What this means is that there are three types of medical underwriting that you can take part in when you are applying for life or health insurance. This thing types of medical underwriting processes are listed and explained below:
Simplified Issue Underwriting
This simplified issue underwriting is the simplest form of the medical underwriting process because it does not rely on any information collected through medical exams. It also does not ask too many questions it only asks a few medical-related questions that you can answer easily. Keep in mind that any policy of tends to dismiss always provides low coverage.
In a celebration on the 19, there is no physical exam that is conducted rather your application is analyzed through the use of various third-party sources. One of some sources that are considered is your prescription history and then an interview might be required. This basically has the insurance company cut down and provide a slightly better than simplified underwriting coverage.
Full Medical Underwriting
As the name suggests full medical underwriting basically involves everything about your head both physical exams and exams conducted to true other third-party sources. So that the insurance company can fully determine the risk of getting you covered in order to give you the best rates that you need to have for your insurance.
Medical Underwriting Pros and Cons
When it comes to the pros and cons of the medical underwriting procedure there are mixed feelings because the answer is not black and white. Medical professionals think that medical procedure is a good thing because it helps to keep individual health insurance premium as low as possible so that people pay less on health insurance and life insurance.
However, in most cases, it basically prevents people with even minor and cutie bill pre-existing conditions from obtaining or being eligible for health insurance or life insurance. It can even also cost the price of health or life insurance to Skyrocket to the point where customers will not be able to afford the coverage.
Why is medical underwriting done?
Medical underwriting is basically done in order for the insurance company to determine the cost of getting you covered. No insurance company wants to make a loss when it comes to insurance coverage so they are basically going to have your medical history checked in order to know how much you need to pay and how eligible you are for your insurance coverage.