Why could my Critical Illness and Life Insurance be rated?
A rated premium is when the insurance company increases the standard premium due to some area of concern that will have come to light during the underwriting process. The standard premium will have been the amount quoted at the start of applying for the life insurance. However, this quote is based on the amount of life insurance required, the term of the cover, the applicants’ sex, age and whether they smoke or not. Before the policy can be issued an application form will need to be completed providing further information such as, height & weight, occupation, health, family health etc.
If there is anything that the underwriters consider to put the applicant at a greater risk that would result in a claim then the monthly premium will be increased accordingly. The greater the risk the greater the rating – increase on the premium. Prior to any insurance company issuing someone a life insurance policy the person applying must first go through the companies underwriting process. The underwriting process involves someone, the underwriter(s), looking at a number of different factors regarding the person applying for the life insurance.
The applicant will have to complete the insurance companies appropriate application or data capture form providing the companies underwriters with various information about themselves. Such information will include the following; their sex, age, if they smoke, height & weight, occupation, health, family health etc. If the applicant has certain health issues the company may write to their GP for further information. Once the underwriters feel they have everything they require they will then put forward an offer of cover to the applicant based on this information.