Disability Insurance Broker Explains the Underwriting Outcomes Process
As a skilled Disability Insurance Broker, I get questions all the time from clients about the most common underwriting outcomes. Interestingly enough, I’ve been doing this for 35 years and when someone finally realizes that they need disability insurance, they don’t realize that they have to apply and get the disability policy from the insurance company. The insurance company is going to want to make sure that you’re a young, healthy, person so they’re going to receive premium payments and not have to pay any claims. You, on the other hand, know that the risk is high, and you want to obtain a policy that is right for you.
When you go to get the policy, they go through the underwriting process and there are outcomes from that process. The first and most likely policy is they issue it as applied and you get the policy that you talked with your broker or agent just as discussed prior. They could add a rating, which means they’re going to add additional premiums because you have a higher risk of having a disability policy, so they correspondingly charge higher rates.
They could also have an exclusion rider for pre-existing conditions; things like a back injury, stress-related illness or injury in the past. They’re going to exclude that from coverage during that underwriting process.
The last, and worst, case is they’re going to decline to give you coverage. Here you are getting disability insurance, something you probably didn’t want to do in the first place. But you realize it’s extremely important to protect you and your family, and now the insurance company is saying, we’re sorry, we don’t want your money. Due to your current medical condition we cannot provide you coverage.
If you are a physician or dentist and have questions about the outcomes of disability insurance, contact our professional Disability Insurance Brokers for guidance. Let our experience work for you
This educational blog was brought to you by Disability Insurance Broker Michael J. Bruno, seasoned Chartered Financial Consultant, Chartered Life Underwriter and Registered Health Underwriter. Specializing in financial planning and disability insurance for physicians and dentists for over 30 years.