Life insurance is a crucial financial planning tool that provides protection and financial security for your loved ones in the event of your passing. There are various types of life insurance policies available, but one of the most comprehensive and traditional options is fully underwritten life insurance. In this article, we will explore what fully underwritten life insurance entails, its benefits, and why it may be the right choice for many individuals and families.
Defining Fully Underwritten Life Insurance
Fully underwritten life insurance is a type of policy that involves a thorough and comprehensive evaluation of the applicant’s health and lifestyle before the policy is issued. It typically requires a detailed application process, including a comprehensive medical examination and a review of the applicant’s medical history, family medical history, lifestyle habits, and other pertinent factors.
An alternative to a fully underwritten policy would be simplified issue life insurance. Both require the applicant to answer some questions about their lifestyle and medical history, however simplified issue policies do not typically require a medical exam.
More and more we’re seeing fully-underwritten insurers also offering accelerated underwriting. What does this mean? Accelerated underwriting essentially allows the insurer to replace your medical exam with electronic health records, so you avoid the exam while still getting a lower price. Insurance providers do reserve the right to apply this selectively, so applicants should still expect a medical exam. But 30-50% of individuals will be pleasantly surprised to get approval without scheduling an exam. All of Everyday Life Insurance’s fully underwritten products offer accelerated underwriting.
Why is Underwriting Important?
We all lead busy lives and love the idea of skipping an additional step or appointment. However, that might not actually be the best choice in this case. Insurance companies use this information to assess the risk associated with insuring the applicant. The underwriting and exam process helps determine the appropriate premium rates for the coverage and ensures that the policy’s death benefit adequately reflects the applicant’s risk profile.
While simplified issue policies are more convenient, there’s a good chance you’ll end up paying higher premiums for the same amount of coverage.
Two Key Benefits of Fully Underwritten Life Insurance
- Larger Coverage Amounts: Fully underwritten life insurance policies generally provide higher coverage amounts compared to simplified or no-exam policies. This is because the underwriting process allows insurers to assess risk more accurately and offer larger death benefits accordingly.
- Lower Price: Because the comprehensive process allows the insurer to assess risk accurately, they can offer lower prices because they don’t have to hedge for the incremental risk of a simplified underwriting process.
Best Online Life Insurance Calculator
Fully underwritten life insurance is a comprehensive option often resulting in the best rates for individuals seeking financial protection for their families. While the process might take a little longer, it’s often a very wise investment of the applicant’s time. Try out our online life insurance calculator to see what plan makes the most sense for you! We have a variety of accelerated, simplified, and fully-underwritten policies available for our clients. Our technology finds the right policy for you, makes the process painless, and makes it available 24/7.Everyday Life Insurance was designed to make finding the best plan for your circumstances and budget simple. It takes just 2-3 minutes to be matched with your ideal policy. Once you have your personalized recommendation, if you like what you see and you’re comfortable with the price, go ahead and apply! You can easily explore other options or find answers to your insurance questions. What’re you waiting for? Find the perfect plan for you.