You’ve probably noticed that whenever you apply for any type of insurance, there are many questions for you to answer before you get down to the important details; the price. This is because insurance companies need to assess your individual risk profile before being able to give you an accurate quote. This process of assessment is known as the underwriting process, and each insurer has their own set of underwriting rules and questions designed to determine what price you’ll pay. MiWayLife gives some of the key points that life insurance companies focus on during the underwriting process.

Firstly, they’ll likely ask for your details and ID number. Some customers become concerned upon hearing this, but as insurers are bound by privacy laws, you don’t need to worry about the reasons for needing your ID number. Usually it is to confirm your age and your status as a resident or citizen, as there may be rules around insuring foreign citizens, minors, or people over a certain age.

Once the basic details are covered, life insurers will generally want to know about your overall health and lifestyle. You might wonder why you’re asked your height and weight; this is normally to determine your BMI as a basic indicator of health. You’ll also be asked about your smoking habits, as smokers typically pay more for life insurance due to the extra health strains that it creates. Age is another major factor for most life insurers, and you’ll notice that the younger you are, the cheaper the insurance. This is because young people are generally healthier and you are less of a risk for the insurance company to take on as a client. As you get older, your premiums will increase even if you haven’t had any health issues. The sensible thing then, is to take life insurance while you’re still young and healthy.

You will also be asked about your health history and any medical conditions you might have. Normally, you’ll be asked about any lengthy hospital stays or ongoing health problems, specific conditions such as diabetes or cancer, as well as any medications you take or surgery you may have undergone. Again, certain conditions will cause your premiums to be more expensive and other conditions may mean that your cover will be declined. Some insurers might not cover you due to your diabetes or BMI, for instance, whereas others will cover you with no problems

The exact questions asked will depend on the insurer, as their underwriting rules are specific to each company. The same goes for medical tests; some companies will not require any, others will require blood tests and physical examinations. The main thing to realise is that it’s important to answer any questioned posed to you as honestly as you can. Lying or omitting the truth could lead to problems when your beneficiaries want to claim after your passing.