How is my rate class determined?
When your application arrives at the life insurance company, it is passed to a special employee known as a life insurance underwriter. The underwriter's job is to assess your mortality risk and assign you to a rate class (health class) which reflects that risk.
When evaluating your mortality risk, the underwriter will consider the information you provided on your application and the results of your life insurance medical exam, as well as your medical history and your family history. No, you don't need to send in these materials; part of the underwriter's job is to contact your health care provider and request these records for himself or herself. (The time spent waiting for these requests to be filled is the primary reason why the underwriting process takes as long as it does.)
The underwriter might not stop at just reviewing your medical records, however. If your rate class remains in question (and if your policy is large enough to merit further investigation) the underwriter may consider your driving record, your credit history, and anything else that gives him/her a clue as to your life expectancy.
In choosing a rate class, the underwriter follows guidelines created by the life insurance company. For example, the company might dictate that any breast cancer survivor must undergo regular screenings for a period after remission before being considered for standard rates.
Underwriting guidelines differ from one company to the next, so a thorough understanding of the guidelines for each company will best point to the insurer with the lowest rates. At Wholesale Insurance, we pride ourselves on our underwriting expertise. We specialize in hard-to-place cases and can help you find the best life insurance rates possible.
