What is underwriting in income protection?
Underwriting is the process insurers use to assess your risk and determine the terms of your coverage. It involves a detailed review of your medical history, lifestyle, and financial situation. Medical underwriting examines factors such as pre-existing conditions and overall health. Insurers may request access to your medical records or even require a medical exam if you are seeking a higher level of cover. In addition, financial underwriting ensures that the amount of coverage you apply for is appropriate for your financial circumstances, helping to prevent over-insurance and keep premiums affordable.
