What is Underwriting?

Underwriting is the process insurance companies use to evaluate the risk of insuring an individual or group and determine premium rates. This assessment traditionally considered factors like age, health status, medical history, and lifestyle habits. While the Affordable Care Act prohibits medical underwriting for most individual and small group health plans, it still applies to life insurance, disability insurance, and certain supplemental health policies.

Why underwriting matters

• Determines eligibility: Affects who can obtain certain types of insurance coverage
• Sets premium rates: Influences how much individuals pay for insurance based on risk factors
• Impacts insurance markets: Helps insurers maintain financial stability by matching premiums to risk

How Solace can help

A Solace advocate can help you understand when underwriting applies to your insurance options, prepare for medical evaluations if required, and explore guaranteed issue alternatives for health coverage. Advocates can also assist with finding the most favorable rates based on your circumstances.