The purpose of underwriting is to ensure that people with similar probability of claiming are offered cover at a similar price. The price of cover is based on assumptions pertaining to the likelihood of death, disability or severe illness. This prevents healthy people from subsidizing people with a higher probability of claiming. Therefore, so-called "impaired lives" pay a higher price for their cover. The underwriting process requires personal and medical detail on each life. This information is gathered in the application process. Depending on the age of the applicant, amount of cover applied for and answers to the questions in the Underwriting Annexure, we may require certain medical tests.
Personal Financial Planning can make use of a Blood Profile test, Short Medical Report and a Standard Medical Report to help in the underwriting process. Once your intermediary has the list of medical requirements, the necessary arrangements can be made. The life covered should produce valid photographic identification in all instances in order to prevent fraud. By following the correct process underwriting will be completed quickly and easily.