Underwriting,
explained simply
Underwriting is how an insurer decides whether to offer you cover, and on what terms, based on your individual risk.
Every applicant is different, so insurers ask about your health, lifestyle and occupation to price your policy fairly — rather than charging everyone the same amount regardless of risk.
How underwriting works
Application
You apply for cover and provide basic details like age and the amount you need.
Medical & lifestyle questions
You answer questions about your health, family history, occupation and hobbies.
Insurer assessment
The insurer reviews your answers, and may request medical evidence for larger amounts of cover.
Terms confirmed
You receive confirmed terms — standard rates, an adjusted premium, or in some cases an exclusion.
Why full disclosure matters
You have a duty to answer underwriting questions honestly and completely. This isn't just a formality — if information is missed or misrepresented, it can result in a claim being reduced or refused later, at the worst possible time for your family or business.
If you're ever unsure whether something is relevant, disclose it. Your adviser can help you understand what insurers need to know and how it's likely to be assessed.
Underwriting FAQ
What if I don't disclose something?
Non-disclosure, even unintentional, can lead to a claim being reduced or declined. Always disclose fully and let the insurer decide what is relevant.
Will I need a medical exam?
This depends on your age, health, and the amount of cover you are applying for. Larger amounts of cover are more likely to require a medical.
Can my terms change after underwriting?
Yes, if new information comes to light during underwriting that wasn't part of your initial application, your terms may be adjusted before the policy is confirmed.