Non-Medical Limits

What you need to know and how to prepare your client

Many carriers are now offering “non-medical” underwriting to clients within a specific age group up to $5M of coverage. Each carrier has different policies and approach to non-medical underwriting, so it is important to understand the specifics for the carrier you are working with. Non-medical underwriting comes with a caveat that is often not known until your client has been selected. The caveat being that non-medical underwriting may include random audits. These audits are commonly triggered by an automated system and when your client is randomly selected, additional medical requirements are required to proceed with underwriting. In some cases, random audits requesting additional medical requirements are requested AFTER policy issue. The percentage of random audits can be as high as 50% of all non-medical cases.

It is important to understand the age/amount requirements set by each of the Carriers are minimum requirements only. Once the application is received, an underwriter reviews the file and based on total aggregate amount pending and inforce along with the overall medical history and health of the client, the underwriter may request additional requirements. In many cases, additional requirements are triggered when a policy goes inforce and the client applies for additional coverage shortly after with the same Carrier.

How can you ensure a smooth application process? Your role as an advisor is key to ensuring your client is informed of the application and underwriting process. It is always best to prepare your clients by advising that all non-medical applications are subject to potential audits in which additional requirements are requested by the Underwriter. If your client happens to be selected, it will be less of a shock then if they thought the application was a simple, non-medical.

“Before anything else, preparation is the key to success.”
Alexander Graham Bell