First, we’ll look at what Life Insurance underwriting is so you can gain a better understanding of the benefits of accelerated underwriting.
What is Life Insurance Underwriting
Underwriting is a process that life insurance companies use in order to determine the eligibility of an individual for life insurance protection. When a life insurance company conducts the underwriting process, it looks at a variety of information (medical and non-medical), and then completes and eligibility assessment to decide if they will accept and approve coverage. This often includes a medical exam with blood work and other tests, so it can take a long time to complete the process.
The Goal of Manulife’s Accelerated Life Underwriting
The accelerated underwriting process was created to reduce the time it takes for a term life insurance application to be completed. Generally, the process takes between 28-36 days, but with the new process, Manulife is hoping to issue policies within a week.
They can do this because the new program will use information that is quickly obtained, thus eliminating bio-metric tests (lab testing and exams). It will affect a large number of Canadians who are eligible for what is called Preferred and Super Preferred applicants, provided that they qualify.
General Requirements for Accelerated Life Insurance Underwriting
- Between ages of 18-40
- Face amount from $50,000 – $1 million
- Preferred and Super Preferred underwriting risks
- No major medical conditions
Thus, bio-metric tests will still be required for applicants with certain personal histories or health concerns such as:
- Heart disease
- More than two driving infractions in the last 24 months
- Family history with two or more family members who have been diagnosed under 50-years old with diabetes, heart disease, cancer or stroke
Accelerated Life Insurance Underwriting Policies
- Term 10, 20, and to age 65
- Term policies are convertible to permanent after issue
It’s important to note that you are still required to complete and insurance application, but it will be processed much quicker if you qualify for accelerated underwriting.
In summary, the accelerated underwriting process recently introduced will mean that the application process for term life insurance will be less intrusive, and quicker. There is also the possibility that some individuals will qualify who may have not gotten insurance coverage if it involved a fully underwritten application.
If you’re interested in finding out more about how accelerated underwriting can benefit you, get your insurance inforce asap, we can help. At Shelter Bay Financial Corp., we have extensive experience with term life insurance products, and can let you know if you should apply through this program.
Please send us an email or call directly at 1.888.498.5288 to learn more.