What is underwriting in insurance and how does it affect me?

“You need to go through underwriting.” Perhaps you were just given these instructions when applying for a health plan or life coverage. But what is underwriting in insurance? And will you qualify? A look at the underwriting process can help you navigate the next phase of your application.

What is medical underwriting?

When you apply for a health plan or life coverage, you may be required to go through an underwriting process to determine whether you qualify. Underwriters examine your medical history and assess your risk factors.

First, you’ll submit information about your medical history, occupation, demographics and other applicable information. Next, the underwriter reviews your information to determine the risk of illness, injury and other medical expenses based on your conditions.

Why is underwriting important?

A health plan must balance risk with claims and monthly costs. If a health plan covers a large percentage of people with high-risk medical conditions, it may have too many medical claims to remain stable. This could lead to high monthly cost increases for plan members or an inability for the plan to cover claims. Underwriting is necessary to maintain a plan’s stability and keep costs as low as possible for its members.

How long is underwriting?

Timing can vary depending on multiple factors. When going through underwriting at GuideStone®, we understand the peace of mind that comes with knowing the status of your application, so all it takes is a phone call to find out the status of your application.

We’re Here to Guide You Along Your Wellness Journey

At GuideStone, we understand that you may have questions throughout the underwriting process and beyond — from questions about health plan options, how much life coverage you need or why disability protection matters. We’re here to walk you through each step to help you lead a resilient life and advance the Kingdom of God. For more information, contact us at Insurance@GuideStone.org or 1-844-INS-GUIDE (1-844-467-4843), Monday through Friday, from 7 a.m. to 6 p.m. CT.

GuideStone welcomes the opportunity to share this general information. However, this article is not intended to be relied upon as medical or legal advice, diagnosis or treatment.