Life Insurance Underwriting Questions

When you apply for insurance or file a claim there’s on person standing in the way of approval—the underwriter.

In all cases, the decisions that determine your approval or decline come down to a number of variables that are not widely known by the general public… until now.

The LSM Insurance broker team has pledged to use their combined 80 years experience in the insurance to give you a leg up on what influences underwriter decisions these days, so you know going in the likelihood of your application’s approval.

An underwriter also has the power to determine how much you’re going to pay in premiums every month. Those in excellent health and with an excellent family health history can qualify for preferred rates, which can save them over 20% on their monthly premiums and LSM can explain in more detail how you can qualify for these special preferred rates.

It used to be that insurance companies took on all the risk associated with an individual policy, but now a reinsurance company shares the risk of an insurance policy, so you must meet the underwriting criteria of two different companies. Underwriting is getting more complex, so it’s getting more and more difficult to qualify for insurance. Add to that, the underwriting criteria for both insurance and reinsurance companies is
constantly changing and evolving, so it’s even more important that LSM Insurance help you get one step ahead of the underwriters and know what to expect from them when applying for insurance.

LSM Insurance is here to help and we believe that knowledge is power.  You can also call us at 1-866-899-4849 or visit our No Medical Life Insurance Quote Page.

More articles featuring answers to your most common underwriting questions

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  • Grant
    November 9, 2014 at 4:42 pm

    Can you get BMO Guaranteed Life Plan even for a client who was just declined for Cancer and can I see it with my BMO code

    • LSM Insurance
      November 9, 2014 at 4:45 pm

      Thanks Grant. Yes this plan is available to someone who was just declined for Cancer because it is a Guaranteed Issue plan and their are no health questions. Keep in mind their is a two year waiting period on non accidental deaths and depending on when your client was diagnosed and had a chance of treatment for Cancer they may qualify for a Simplified Issue plan.

  • Chloe
    September 12, 2014 at 5:05 pm

    I was declined for life insurance early last year because of past drug use. I used marijuana a few months ago but just a one time thing. Can I get policy, I don’t want to get declined again.

    • LSM Insurance
      September 12, 2014 at 5:14 pm

      Hi Chloe,

      If you were declined for past drug use and you used Marijuana in the last 12 months get traditional life insurance may be a challenge.

      You could have a broker submit a preliminary inquiry which would give you idea if you would be approved with actually applying. You could also qualify for a Simplified Issue plan as many of these plans do not have a drug questions and once you pass the 2 year mark from your point of decline you could qualify for an immediate pay plan.

  • Thatcher
    August 13, 2014 at 11:40 am

    Does the BMO Guaranteed plan I received info on in the mail insure someone who is 82 with Diabetes

    • LSM Insurance
      August 13, 2014 at 12:19 pm

      The BMO Guaranteed Life Plus plan insured people up to 75. Having said that many carriers now insure people up to 85 years old.

  • LSM Insurance
    July 21, 2014 at 7:41 am

    Hi Stefan,

    Minor traffic infractions generally won’t impact your life insurance rates. But more serious violations are generally deemed a lifestyle risk which insurance carriers do take seriously. Most No Medical Simplified Issue plans do not ask driving related questions,

  • Stefan H
    July 21, 2014 at 7:38 am

    Can a careless driving charge effect my life insurance rates. I’m not sure why this would be an underwriting concern. Makes no sense to me granted I’m not an insurance guy or an underwriter.

  • John
    June 21, 2014 at 11:34 am

    Does BMO sell it Guaranteed Issue plan through brokers.

    I have a client he wants to take the plan but prefers to buy the policy through me. My MGA was unsure. Thanks

    • LSM Insurance
      June 21, 2014 at 11:40 am

      Thanks John. Unfortunately this plan is not available through sale via its broker network. But depending on your clients health issues they may be able to qualify for a traditional life insurance or Simplified Issue Life Insurance policy.

  • John
    May 26, 2014 at 2:37 pm

    Hi, I’ve noticed that I have a difficult time getting a good insurance rate due to a history of illnesses that run through my family. I know underwriting has a list of criteria, but how can I go about obtaining a good rate. Do I need to go to switch to a different broker who is well ahead of the underwriters?

    • LSM Insurance
      May 26, 2014 at 3:06 pm

      We would be happy to submit a preliminary inquiry to a few carriers to see what your potential options are. Family health history should generally not disqualify you from life insurance.

  • LSM Insurance
    May 22, 2014 at 5:35 pm

    Thanks Lloyd, I’m not sure discrimination is the right word. Smokers are charged an extra premium because their is extra risk to the insurer. Smokers are not disqualified from any plan.