Non-medical underwriting limits for business protection – 4 things you should read
Non-medical underwriting limits are the threshold at which over a certain amount of cover, the insurer will automatically ask for further evidence to support the application, regardless of there being an specific disclosures. When it comes to business protection insurance, over certain sums-assured insurers may ask for both further medical and financial evidence to support the application. Having an awareness of not only when these limits are likely to be exceeded, but also what further evidence will be required from the applicant, can help ensure the process runs as smoothly as possible. To support advisers recommending business protection insurance, in these four insights we highlight the financial and medical underwriting limits advisers are likely to encounter and how insurers compare across the market.
Life Cover
Whilst this insight isn’t specifically focused on business protection only, the life insurance underwriting limits highlighted are applicable to business, as well as individual life applications. We compare the requirements across each insurer for overall limits, GP report requirements, nurse screenings and medical examinations.
Critical Illness Cover
Like the previous life automatic medical underwriting limits insight, this article isn’t specific to business protection, but the thresholds apply to both business and individual critical illness applications. Once again, the limits for critical illness are slightly lower than life only, as we’ve examined in detail, focusing on all the various requirements that could be triggered from each insurer.
Income Protection
The Income Protection market has more insurers in the intermediated space than life or CI with the addition of the friendly societies that specialise in this area. Many of the friendly societies approach automatic medical evidence slightly differently to the traditional insurers with some not automatically requiring medical evidence at younger ages if at all. In this article we look at some of the nuances that advisers might want to understand in order to be able to avoid automatic medical evidence.
Family Income Protection
Finally, we take a look at the automatic medical evidence requirements for Family Income Benefit. Although based on the same limits as life and critical illness, advisers need to run a calculation over their clients benefit which is based on the monthly benefit and term of the plan. As always there are insurers that apply different forumla’s when calculating the automatic medical evidence requirement and in this article we explain each approach.
