Underwriting

• When you apply for a life insurance policy, you undergo a process called underwriting. Underwriting essential dictates whether or not you are insurable. The higher the amount of insurance you're applying for, the more rigorous the underwriting process is. Underwriting can range from obtaining a simple report and reviewing your medical records to requiring a doctor's visit and a stress test. Underwriters will also review how much life insurance you currently have in force when making their decision. Based on the findings, underwriters will decide whether to accept you, make you an offer of insurance if you're willing to pay a higher premium or decline your application.
  
  

MIB Report

• The MIB Group, Inc. provides reports to insurance companies. Reports include how often you apply for insurance; how much insurance you applied for; whether you were accepted or declined; and basic information as to why you were declined. For example, if a life insurance company sees that you applied for several policies in a short period of time and that providers declined each policy due to a health condition, the company will use that information when deciding whether to insure you. You can obtain a copy of your MIB report by visiting the company's website.
  
  

Applying for a New Policy

• Changing life insurance policies is a fairly involved process. You need to apply with the new insurance company, make certain you're approved for a new policy, then submit a request to surrender your previous policy. The exception to this process is employer-sponsored life insurance. If you leave your current employer, you can get life insurance through your next employer without any underwriting. Employer-sponsored insurance is underwritten on a group basis, which means that you're guaranteed coverage as long as you sign up and pay your premiums.
  
  

Considerations

• When you're contemplating changing life insurance providers, keep in mind that insurance premiums are more expensive as you age. When you receive a quote, make certain you're comparing the same types of insurance. Term insurance, for example, is much less expensive than whole life insurance, but it also works differently. Whole life insurance builds cash value, while term insurance doesn't. Changing life insurance providers may not be in your best interest if you've had a policy for a long time. Carefully review a new policy before canceling an old one.