Usually, there is a pre-screening questionnaire that will be completed and this questionnaire contains a list of uninsurable medical conditions. The use of the pre-screening questionnaire helps eliminate applications from those who are sure to be rejected.
The application for critical illness insurance is similar to an application for life insurance however, there are more questions about the applicant’s family medical history.
In situations where the applicant fails to meet all the underwriting guidelines the company may offer the insured the non-standard rate. In these cases the insurer may:
1. Add a surcharge to the regular rates to reflect the increased risk for that applicant.
2. Issue a policy which contains specific exclusions , such as pre conditions exclusion, certain illnesses or conditions can be excluded
3. Basic Plan coverage only to the applicant
When underwriting a critical illness policy, the insurer will review the following areas:
1. Family history
Hereditary factors have a strong influence on the applicant suffering certain diseases in resulting of disqualification of the applicant if one or more family members has been diagnosed or has died from a covered disease.