The entire process ofwriting has been known to upset many people who apply for disability insurance. This is mainly because people have unrealistic expectations and their agents do not prepare them for the process. This article is an endeavor to explain the disability insurance underwriting process so that people have better understanding.
If you are applying for disability insurance (DI), it is important to realize that you will not get a policy exactly as you applied for. The underwriter can reduce the amount of coverage, place exclusion riders, increase the rate, decrease the benefit period or even offer you a completely different policy. The other end of the spectrum is complete denial of coverage.
The first step for getting the insurance is to fill the application. Do not expect your agent to fill it out for you as this can cause you a lot of damage to your Medical Information Bureau file. Take time to fill out the application yourself and make sure you fill it out in detail. This will ensure that there will be no follow-up questions during the ongoing process. It will also eliminate the need for doctors' medical records.
When you come to the part about explaining your occupation, make an effort to put yourself in the best possible light without lying. The higher the occupational class given by an underwriter, the lower will be your premium rate. For example, a computer consultant is graduated lower than a computer engineer. Therefore, an engineer pays a lower rate than a consultant. It is quite possible that your occupation is something vague so you should make an effort to give a complete picture of what you do. If necessary give a breakdown of your time which includes travel or meeting clients.
The application also has a section for financial history and most insurance companies will want to know what you are currently earning and what you earned in the last couple of years. This should be supported by a W-2, tax return and / or pay stubs. When it comes to disability insurance underwriting, you will always get an offer based on what your financial status is and the amount of documentation you can give to verify it. For example, you are making $ 150,000 but can only produce documents for $ 100,000, you will get an offer for $ 100,000 and not the other way round.
The third and most important part of your application is your medical history. An underwriter will want to see your medical history for last 10 years. Therefore, the more information you supply to the underwriter through your application, the less information he or she would have to dig out. Make sure you list every doctor you have visited in the last 10 years, along with their addresses and the reason for visit.