Underwriting explained
The way in which an IP policy is underwritten is very important to enable you and your client to have peace-of-mind that should they need to make a claim their policy will be valid. Underwriting is effectively the risk rating that we put onto a policy. Therefore underwriting will decide the premium that the client pays.
It is therefore vitally important that your client provides full details and completes their application as accurately as possible. Non-disclosure may result in Aviva declaring the policy invalid and may result in non-payment of a claim.
The main factors which will effect the underwriting of an IP policy include:
- Occupation
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Occupation forms a fundamental part of the underwriting of Income Protection. It is important to gain full details of your customer’s occupation, and in turn they should accurately describe their occupation.
The occupation of your client will usually affect the premium they pay. If the occupation involves a lot of physical activity their premiums will be higher than that of an office worker due to the risk of them injuring themselves and becoming unable to work.
There are a number of occupations that are seen to be high risk and will not be covered through Aviva. These include Miners, Scaffolders and Police Officers.
- Medical History
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As with their Occupation it is vitally important that your clients complete all questions on their application as accurately as possible to avoid the possibility that during a claim their policy will become invalid.
We will not usually require any further information other than that on the application form. For some clients, particularly those over the age of 50 we will require some other medical information, which can include General Practitioners Report or an ECG.
There are also a number of conditions that if your clients are suffering from will make them ineligible for IP. These include: HIV/AIDS, Multiple Sclerosis and major heart conditions.
- Sports and Pastimes
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If your client takes part in extreme or dangerous sports we may choose to not cover them. These sports include caving, pot-holing and martial arts.
- Other factors
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There are other factors, including age and gender, that will effect the premium your customer will pay.
We have developed a Handy Underwriting Guide and list of frequently asked questions to help you deal with any underwriting questions you or your clients may have.