Investing in Disability Insurance is one of the smartest things you can do nowadays. There is so much to learn, see, and explore in this world. Without proper precaution, you could end up hurt/sick/disabled and unable to work. By having Long-Term Disability Insurance or Short-Term Disability Insurance, you will be financially protected. You will also be able to continue paying for life’s daily expenses and needs.
But, Disability Insurance isn’t something that is given to you automatically. There is a process that must be followed and it starts with an application. After your application is submitted, it goes through a specific kind of process called underwriting.
What Happens During the Underwriting Process?
When an insurance company receives your application, it gets sent to their underwriting department. From there, it’s given to an underwriter. They will review your application in depth and calculate how much of a risk you are to their company. They will put you into a risk category, which determines how much you will have to pay a month.
Things You Need To Know About The Underwriting Process for Disability Insurance
- Your age and gender heavily affect your Disability Insurance premium.
- Women are considered to be more of a risk to an insurance company because they file more claims than men.
- The younger you are, the less you insurance premiums will be.
- Depending on your occupation, you will get grouped into a risk category which will determine how much of a risk you are to the insurance company.
- Insurance companies look at your income and determine how much of a monthly benefit you can get.
Other Important Information
- The underwriter will also factor in your current health, lifestyle, and medical history.
- They take into consideration if you have any other kind of Disability Insurance coverage.
- You can get denied for the initial coverage you applied for. Some people may be issued coverage, but with specific terms.
- You can also get denied coverage, but this can be appealed.
- Working with a Disability Insurance advisor is extremely helpful because they can work directly with you.
Keep In Mind
- The underwriting process takes about a month to complete.
- You do not send in any money with your application.
Our experienced advisors can help you fill out a Disability Insurance application and guide you through the underwriting process. To get started, call us at (800) 788-8921 or fill out our brief Contact Form to be contacted by an advisor directly.