Priority protection financial underwriting

Financial underwriting is an assessment of whether the proposed sum assured and product are reasonable when considering the potential financial loss of your client.

Benefits of financial underwriting

To be able to maintain competitive premium rates for your clients by:

  • Reducing the number of early lapses that contribute to additional costs.
  • Minimising the impact of anti-selection that creates higher than the predicted number of claims.
  • Eliminating fraudulent claims which would otherwise drive up premiums for the vast majority of your clients

Underwriting consideration

  • Is there a valid insurable interest between the life to be assured and the proposer?
  • Is there a clearly identifiable financial loss in the event of the insured event happening?
  • Does the proposed contract match how the financial loss emerges; eg is the contract term appropriate?
  • Is the proposed sum assured commensurate with the potential financial loss?
  • Will the proposer be able to continue paying the premiums during the contract term?

Financial evidence is required on:

  • Life applications where the sum assured is above £1,500,000
  • Critical Illness Cover (CIC) applications where the sum assured is above £750,000
  • Income Protection Benefit (IPB) - no financial evidence is required during the underwriting process. Financial assessment will take place at Claims stage.

For further details please see the items under 'Key Documents'.