If you have a pre-existing condition or if you have a family history suffering from certain condition, you may want to consider preliminary underwriting.

Preliminary underwriting is a process which a financial adviser assists you to find out from which insurers are likely to offer you the best terms and conditions in view of your condition. It is best to approach a financial adviser that is able to do so with multiple insurers so that you can make your decision in a more efficient manner.

Preliminary underwriting is an anonymous process. None of the insurers know your identity. It is also non-obligatory to all parties. That is to say that the insurers that response reserve the right to offer a different terms if a formal application is made. However, from my experience the terms and conditions are usually the same as that of the preliminary underwriting unless the time span between the preliminary underwriting and the actual application was too long or there has been a change in reinsurer.

Because preliminary underwriting is a “free” service, not all insurers are that willing to underwrite an anonymous case. Nevertheless, it is a service you should ask for. Do note that this increases the work load of a financial adviser. Since this is a “free” service and pays no commission, the financial adviser may persuade you to buy other commission paying but non-suitable products which require little or no underwriting. Ensure you approach a financial adviser that does not need to earn a commission to assist you. You should ask his charges for helping you with the preliminary underwriting. 

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