Medical Underwriting - How Policies Get Created

When people get an insurance rate quote back from a health insurance company, most people don't think too much about how the insurance company decided what kind of premium to offer them and what magnitude of coverage to offer them. The answer to this question is medical underwriting: the medical health status information acquired in the process of evaluating the health condition of an applicant. While some companies require applicants to submit blood and urine samples as well as filling out a detailed medical history, others allow you to provide your own information and will take your word for the information you've provided.

There are two major decisions determined by medical underwriting. The first is whether to offer or decline coverage. If, in the underwriting process, the insurance company discovers that you have a pre-existing medical condition, or if they are able to diagnose you with a problem that you were previously unaware of, they may choose to deny you coverage. Basically, the company has free rein to decide whether to offer coverage or not, so, if you're denied coverage by one company, all you can really do is try another insurance company that will perhaps have less rigid standards for what constitutes a bad insurance risk.

The second decision determined by medical underwriting is how high or low your premium will be. If you're found to be in excellent health and you live a healthy lifestyle, then your premium will probably be low, since you'll be seen as a low insurance risk. But, if you are in poor health, have certain pre-existing medical conditions, or live a risky or unhealthy lifestyle, then you may be considered a high risk by the insurance company and may be offered a high premium, limited coverage, or perhaps even be denied coverage altogether.

Because the medical underwriting process differs from company to company, it's that much more important for you to get several quotes from many companies. This gives you your best chance of finding the best rate for the insurance coverage that you require. This is particularly true if you have pre-existing medical conditions that may present an obstacle to your obtaining the coverage that you're looking for. When shopping for medical insurance, always make sure to get at least three to five quotes from different insurance companies before making a decision. You could save a lot of money by doing this.

Sean L Johnson is a journalist for Health Insurance Buyer a referral service that refers consumers to the insurance carriers that can best fit their wants and needs. Get a free individual health insurance quote today, you can save up to 50% on your monthly premium.