Life Insurance Underwriting Explained for New Agents
You've found the right policy, the client is ready and the application is submitted. Now it goes to underwriting, and for many new agents, that's where things get confusing. Why did the rate change? Why does the carrier want medical records? Why is it taking so long?
Understanding how underwriting works helps you set the right expectations, choose the right carrier and get more policies placed.
What is underwriting?
Underwriting is how an insurance company decides whether to offer coverage and at what price. The underwriter looks at the risk the applicant represents, mainly health, lifestyle and finances, and assigns a rating class that determines the premium.
What underwriters look at
Health history: current and past conditions, medications, surgeries and family history
Build: height and weight
Lifestyle: tobacco or nicotine use, alcohol, driving record and risky hobbies
Finances: income and net worth, to make sure the coverage amount makes sense
Where the information comes from
The application and the client's answers to health questions
Prescription history and other database checks
MIB (Medical Information Bureau) records from previous insurance applications
Motor vehicle reports
A paramedical exam with blood and urine samples, for some policies
An attending physician statement (APS), meaning records from the client's doctor, when the underwriter needs more detail
Types of underwriting
Type | How it works | Typical speed |
|---|---|---|
Fully underwritten | Application, exam and records review | Weeks |
Accelerated | Data-driven decision; exam may be waived for eligible applicants | Days, sometimes faster |
Simplified issue | Health questions and database checks, no exam | Fast |
Guaranteed issue | No health questions; waiting period and higher cost | Immediate |
Rating classes
Carriers use different names, but most follow a similar ladder, from best to higher risk: preferred plus (or preferred best), preferred, standard plus, standard, and then table ratings for applicants with more significant health issues. Tobacco users have separate, higher-priced classes.
The quote you show at the kitchen table is based on an assumed class. If underwriting lands on a different class, the premium changes. Set that expectation up front.
How to help your cases get approved
Ask thorough health questions before you quote, including medications and dosages.
Field-underwrite honestly. Quote the class the client realistically qualifies for, not the best one.
Choose the right carrier. Carriers view conditions differently. This is where carrier options pay off.
Prepare the client for the exam: fasting instructions, hydration and what to expect.
Follow up on outstanding requirements quickly and keep the client updated.
Never coach clients to hide information. Misrepresentation can put the claim at risk. That's the opposite of protecting the family.
Get support on tough cases
TDN Academy is a life insurance brokerage in Alpharetta, Georgia. Our agents get back-office help with contracting, applications and case questions, access to carriers including National Life Group, F&G, Transamerica, Mutual of Omaha and Athene, and a seven-phase training program. Already licensed? See our page for licensed agents or read the FAQ.
Want help placing more of your cases? Book a short strategy call.
TDN Academy is a life insurance brokerage. This article is for general educational purposes for insurance professionals. Underwriting requirements, rating classes and timelines vary by carrier and product. Income and results vary and are not guaranteed.
