For example, someone being treated for high blood pressure or cholesterol would have been automatically disqualified for the most preferred classification under the old process. That is no longer the case under the new system, as long as they have other factors weighing in their favor.
One of the main innovations of the new system is the use of three age bands, rather than the two that are used by most insurers. This change recognizes the unique risk characteristics of young, middle-aged, and older people, and allows underwriters to offer insurance at a rate that more closely reflects an individual’s risk.
For example, The Hartford estimates that three in ten older applicants will now qualify for the most favorable preferred rate, which is a three-fold increase compared to the old system.
The new underwriting process also gives an individual credit for being in good physical condition, for getting regular exercise, for a favorable result on imaging tests used to screen for heart disease, and, in the case of older applicants, for having parents who lived to a ripe old age.
