Underwriting is a major part of the life insurance application process, but how does it work? And how does life insurance underwriting affect your rates and eligibility?
Life insurance companies rely on accurate, thorough underwriting to assess applicant rates and eligibility. Every insurer has its own underwriting guidelines, and everyone’s health is different, making the process even more confusing.
If you’d like to simplify your life insurance application and underwriting, we recommend applying with help from our licensed agents. As a top-rated life insurance brokerage, Final Expense Benefits is here to help you navigate the confusing life insurance underwriting process.
To find a great policy that meets your needs and budget, call us at (866) 786-0725 Monday through Friday, 9 a.m. to 5 p.m. ET, or check our free online quoting tool for a personalized pricing estimate.
Key takeaways
Life insurance companies assign rates and eligibility by assessing applicants’ health and lifestyle through a process called underwriting.
Underwriters use your application, medical questionnaire, medical exam, public information, and more to assess your risk level.
Underwriting can be instant for some policies, but usually takes between two and eight weeks. A longer turnaround time may mean rates are cheaper because they accurately reflect your health.
Burial insurance is designed with seniors in mind, providing simplified underwriting that isn’t just quick, it’s forgiving of many health concerns.
What is Life Insurance Underwriting?
Life insurance companies use underwriting to assess the level of risk you present to insure. They do this by estimating your life expectancy, based on your health, lifestyle, age, and more. The lower the life expectancy, the higher the risk, and applicants with higher risk are assigned higher rates.
This risk is assessed in a process called underwriting. Insurers begin a prospective customer’s underwriting when they submit their application. Companies base risk assessments on answers to application questions, results from medical examinations and testing, and more.
1
Types of Life Insurance Underwriting
Underwriting practices vary by policy type, affecting applicant rates, eligibility, and the speed at which underwriting results are available. Here are the main types of life insurance underwriting:
- Guaranteed Issue
Guaranteed issue policies skip the underwriting process, meaning applicants are immediately eligible for coverage, regardless of health status. However, insurers assign guaranteed applicants as high risk, giving them high rates. All guaranteed plans have waiting periods, usually two years, and cost about 40% more than comparable non-guaranteed policies. We recommend that only nursing home-bound seniors or those with serious pre-existing medical conditions, such as cancer, dementia, or terminal illness, use guaranteed plans. - Simplified Issue
Simplified issue policies skip most of the medical underwriting process for quick application results — providing same-day coverage without waiting periods. They don’t require medical exams and rely on questionnaires to assess applicants’ health and lifestyle. These policies skip most verification processes, so insurers assign applicants high risk, meaning these simplified plans don’t offer the best rates. - Accelerated Underwriting
Policies with accelerated underwriting offer speedy approval, but are more lenient for medical issues than simplified policies. Accelerated underwriting typically takes two to four weeks, and applicants are eligible for better rates and risk categories than more streamlined plans. Many burial insurance policies feature accelerated or simplified underwriting, offering seniors swift, reliable application results. - Full Medical Examination
Though burial insurance underwriting is usually flexible, many term and universal life providers require full medical examinations to assess health. Requirements vary by insurer, but these exams are usually quick and can be done in-home. Some providers require blood or drug testing. Though exams are quick, result filing and underwriting can take up to eight weeks. However, this long process will give underwriters thorough information, allowing them to offer the most accurate, lowest rates based on your health profile.
2
How Long Does Underwriting Take?
Underwriting processing times vary by policy type and applicant health status. Underwriting for applicants with complicated health records can take as long as 8 to 10 weeks. However, most burial insurance providers offer underwriting ranging from 2 to 4 weeks, with some providing instant approval.
Technology is evolving, and so are insurers. Many now use artificial intelligence (AI) in underwriting, reducing the processing time by simplifying the process.
Even with modern convenience and efficiency, underwriting is a complicated process. Most policies with speedy approval cost more than those with long underwriting turnaround. It’s important to balance your coverage and budget needs, and we can help you find a policy with forgiving underwriting at a good price.
To see how we can help you with your life insurance needs, call Final Expense Benefits at (866) 786-0725 today.
What Factors Does Life Insurance Underwriting Consider?
Life insurance applications can be complicated, asking questions about personal health and lifestyle to estimate life expectancy. Here are some questions you should expect on applications and why they’re so important to insurers:
- Gender
Women generally have lower rates than men because they have longer life expectancies. Per the U.S. Centers for Disease Control, American men and women live an average of 76 and 81 years, respectively.
- Age
Younger applicants generally qualify for lower rates. Don’t wait; apply early to get the best rates.
- Medical history
Applicant health is one of the most important considerations for life insurance companies. Healthy applicants are eligible for better plans with lower rates than those in poor health. Illness and weight are major considerations.
- Tobacco use
Smokers always pay more for life insurance than non-smokers, even if they are otherwise in good health. Smoking increases the likelihood of health issues like lung cancer and COPD, lowering life expectancy and raising rates.
- Coverage amount
Policies with large death benefits have stricter underwriting requirements.
- Income
Insurers check applicants’ income, net worth, and financial status to ensure they can afford coverage.
- Lifestyle and occupation
Insurers check if you partake in any dangerous hobbies like auto racing or have a risky occupation, such as construction. If you regularly engage in unsafe activities, coverage will cost more.
- Driving record
Applicants with DUIs or a shaky driving history likely won’t qualify for low rates or may be ineligible for coverage.
It’s important to be honest on life insurance applications: if insurers find that you falsified or withheld information, they may deny your coverage or raise your rates. Working with a licensed life insurance brokerage like Final Expense Benefits can help ensure your application is submitted properly.
Life Insurance Underwriting Process Explained
Life insurance underwriting can be a lengthy process, but it’s important to be truthful and thorough with questions from your potential insurer. Here are all the steps and how long they can take:
1
Application
Life insurance applications can be difficult to complete accurately, as they ask complicated questions about health and lifestyle. Excluding important information, even accidentally, can lead to big problems with eligibility and rates. The best way to ensure your application is properly completed is with the assistance of a licensed life insurance agent.
Final Expense Benefits can help ensure your life insurance application process is smooth and simple. Call us today to start your application or to learn more about your coverage options.
2
Medical Examination
Some policies require medical examinations, which are common for high-value policies like term and universal life insurance. Burial policies rarely require exams, but they may be necessary in some limited cases to properly assess health status.
If your life insurance application requires a medical exam, don’t worry. Insurers pay for them, and they can be done in your home. Your life insurance agent can help arrange your exam with an insurer-approved medical professional.
Most life insurance medical exams will record your basic measurements like height, weight, and blood pressure. Some insurers may require blood or drug analysis tests to help determine additional risky health concerns.
Remember that just because an insurer pays for your application’s medical exam, you don’t have to accept their policy. Exam results are valid between 6 and 12 months and can be used for other applications, allowing you to weigh several life insurance options.
3
Medical Information Bureau Check
The Medical Information Bureau is a resource insurers use to verify health information provided by applicants. MIB reports are sourced from medical visits with medical professionals and previous life insurance applications.
If you fail to disclose important medical information on your application, an MIB check will likely catch it. It’s best to be thorough and honest on applications to ensure your underwriting process goes smoothly. If you aren’t, your application could be denied, or your beneficiaries may have future issues with payouts.
4
Prescription Check
Insurers will ask your doctors and pharmacists to provide applicants’ prescription medications. Again, missing information can lead to issues, so be as thorough as possible when listing prescribed medications.
5
Attending Physician Statement
Insurers with any additional questions about your health may request an attending physician statement (APS). These statements are typically used by insurers to understand your overall health condition and any underlying causes.
Insurers don’t often require APS reports, but they could add a few days up to several months to your underwriting turnaround.
6
Motor Vehicle Report
Insurers may collect information about your driving history through a Motor Vehicle Report (MVR). These reports detail the past seven years of your driving history and include:
- Traffic citations
- Vehicular crimes
- Accident reports
- Driving record points
- DUI and DWI convictions
If you don’t have a clean driving record, your premiums will be higher. Insurers can easily verify motorist histories, so it’s best to thoroughly disclose your driving record.
7
Credit History
Insurers usually require a soft credit check. This is done to ensure applicants can afford their coverage. Insurers may consider applicants with bankruptcies and large debts to have a higher risk.
8
Final Rating & Policy Offer
The last step of the underwriting process is when you finally receive your rating and offer from the insurer. Your insurer will send a policy offer that includes the monthly premium, death benefit amount, and pricing for any life insurance riders, alongside a paper copy of the policy for you to sign and return.
It’s critical to read through the policy details to ensure you’re getting the coverage you need. Life insurance policy fine print can get complicated, and it’s a great idea to go through this complex final step with the assistance of a licensed life insurance agent. Don’t sign without knowing you’re getting exactly what you wanted.
We’re here to help you get the policy you want. Call Final Expense Benefits today at (866) 786-0725 to start your journey to affordable coverage.
Risk Classifications Used by Underwriters for Life Insurance
Life insurance underwriters classify applicants in risk categories. This is how they determine what rates you’re eligible for, and each category has an associated premium rate range. Insurers may use different names for risk categories, but common ones include:
- Preferred Plus
Reserved for people in the best health. Applicants who are overweight, have extensive pre-existing conditions, or have used tobacco in the last 12 months won’t qualify. This category has the lowest rates.
- Preferred
Used for applicants in great health but who won’t qualify for the highest preferred category. Rates are slightly higher than preferred plus.
- Standard Plus
Most applicants in moderately good health qualify for standard plus, even with negative family medical histories or minor pre-existing health conditions.
- Standard
Applicants with below average health qualify for standard rates. Many applicants who are obese or have a couple of well-managed or minor pre-existing conditions, like high blood pressure or controlled diabetes, can qualify for standard ratings.
- Smoker ratings
Because of the health risks associated with smoking, most insurers assign smokers a high-risk category. Even if they’re in otherwise great health, smokers should expect to pay premiums at least 25% higher than non-smokers.
- Table ratings
The highest risk category, table ratings are for applicants with major pre-existing conditions like cancer or dementia. Applicants assigned table ratings should expect to pay much higher ratings than those in good health.
It’s a good idea to apply for life insurance when you are younger and in good health. Don’t wait until you develop a medical condition to apply. Sign up for a quality plan ahead of time, and not only will you enjoy peace of mind, but you’ll also enjoy lower rates.
Each provider handles life insurance underwriting differently. For example, Aetna Accendo offers simple medical underwriting, while Mutual of Omaha provides competitive smoker rates.
Burial Insurance Offers Relaxed Underwriting to Seniors
Also called final expense insurance, burial insurance is whole life insurance designed for seniors. Burial insurance underwriting guidelines are relaxed, so seniors with many pre-existing conditions can qualify for competitive rates and coverage without waiting periods.
Burial insurance underwriting doesn’t consider age in the same way as term and universal underwriting, meaning seniors up to their 70s and 80s are eligible for quality, affordable insurance.
Plus, because burial insurance is whole life, policyholders enjoy lifetime coverage, rates locked at the policy’s start, and cash value growth.
Rates are low, ranging from around $30 to $150 monthly, and benefits are tailored to seniors’ needs. Average burial insurance payouts range from $5,000 to $50,000, plenty to cover end-of-life expenses, like funerals, cremations, and burial plot costs.
Burial insurance works for seniors in great health seeking the most competitive rates and seniors with major pre-existing conditions who need guaranteed coverage. We recommend seniors get burial insurance thanks to its versatility and simplified underwriting, but who are the best providers for seniors trying to avoid strict underwriting?
1
Best Burial Insurance Providers with Relaxed Underwriting
All of our top-rated life insurance partners offer great coverage and competitive pricing, but here are our picks for seniors looking for an efficient and easy underwriting process:
- Aetna Accendo
Backed by CVS Health, Aetna Accendo offers competitive rates, quality customer service, and underwriting that is very accepting of pre-existing conditions. You’ll likely qualify for low rates with Aetna Accendo, even with medical concerns. - American Amicable
American Amicable offers a variety of life insurance riders to help seniors with pre-existing conditions customize their burial insurance to match their health needs. - Mutual of Omaha
A top-rated burial insurance provider, Mutual of Omaha offers some of the market’s lowest rates, renowned customer service, and a variety of policies to cover any health needs.
2
How Much Does Burial Insurance Cost?
Burial insurance rates vary based on underwriting, but applying younger can help you save.
Here are sample rates from some of our top life insurance partners for a benchmark $10,000 burial insurance policy.
These rates were calculated using a non-smoking applicant with no pre-existing medical conditions:
| Company |
Male 50y/o |
Female 50y/o |
Male 60y/o |
Female 60y/o |
Male 70y/o |
Female 70y/o |
|---|---|---|---|---|---|---|
|
$34 |
$27 |
$50 |
$40 |
$70 |
$56 |
|
|
$32 |
$27 |
$47 |
$38 |
$79 |
$60 |
|
|
$31 |
$26 |
$43 |
$35 |
$71 |
$53 |
|
|
$31 |
$24 |
$44 |
$33 |
$75 |
$53 |
|
|
$34 |
$29 |
$45 |
$35 |
$79 |
$59 |
|
|
$33 |
$26 |
$48 |
$36 |
$82 |
$58 |
These figures are estimates only, based on a $10,000 final expense insurance policy with no applicant pre-existing conditions.
If you’re interested in these or any of our other great life insurance partners, contact Final Expense Benefits at (866) 786-0725. To see how much coverage you may need and how much it’ll cost, check our free funeral cost calculator and online quoting tool.
Final Thoughts
Life insurance underwriting is a complicated, lengthy process that directly affects your rates. Applications can be complex and confusing, and we recommend working with a licensed life insurance agent to ensure yours is thoroughly and accurately filled out.
Final Expense Benefits is here to help you with all your burial insurance needs. Our expert agents can help you find a policy that meets your health and budget needs, assist with accurately and thoroughly completing your application, and ensure your completed policy offer matches what you want.
To get started, call us at (866) 786-0725 Monday through Friday, 9 a.m. to 5 p.m. ET, or check our free online quoting tool for a personalized pricing estimate.
FAQ
What is life insurance underwriting?
Underwriting is the process life insurance companies use to determine eligibility and rates for applicants. Insurers assess applicants’ health, age, lifestyle, and more to get an accurate picture of their life expectancy and health profile.
How long does life insurance underwriting take?
Underwriting times vary by insurer, applicant health, and policy type. Underwriting can be instant for simplified and guaranteed issue policies, but can take up to eight weeks for plans that require medical exams. Burial insurance underwriting normally takes about two to four weeks.
What is the Medical Information Bureau?
The Medical Information Bureau (MIB) is a resource that life insurance companies use to verify applicant health status. MIB reports usually contain simplified medical information from previous life insurance applications.
Does driving history affect life insurance underwriting?
Insurers usually check applicants’ driving history. It’s important to be thorough with your application, as failure to disclose events in your driving history, like DUIs and major traffic citations, can raise your rates.
Will my rates be lower if I don’t disclose health conditions on my life insurance application?
Life insurance companies always verify applicant health. Failure to disclose medical concerns and prescribed medications isn’t just dishonest, it could also lead to your application being denied or your rates skyrocketing.
What is burial insurance?
Burial insurance is a low-cost type of whole life insurance designed to offer seniors accessible, affordable coverage. Average benefit payouts range from around $5,000 to $50,000 and are typically used to cover costs for funerals, cremations, burial plots, and other end-of-life expenses.
How much does a funeral cost?
In 2025, average funeral costs in the U.S. are around $10,000, which is why most sample burial insurance quotes are for $10,000 policies. Check our free funeral cost calculator to see how much coverage you need.