What is the underwriting process for life insurance in Australia?

Underwriting is the process Australian insurers use to assess your risk and determine your premium rate or whether to offer you coverage. During underwriting, you'll complete a comprehensive application form detailing your age, gender, occupation, income, smoking status, medical history including pre-existing conditions, family medical history, lifestyle factors, and dangerous hobbies or activities. For fully underwritten policies (recommended for comprehensive coverage), the insurer may require additional steps: a telephone interview with a nurse to discuss your health, medical examinations including blood tests, urine tests, blood pressure checks, and sometimes ECGs, access to your medical records from your GP or specialists, and financial evidence if applying for large coverage amounts. The underwriting process typically takes 2-6 weeks, though simple applications can be approved within days. Based on this assessment, the insurer may offer you standard rates, apply a premium loading (higher cost due to health risks), exclude specific conditions from coverage, or decline your application. Some Australian insurers offer 'simplified' or 'guaranteed acceptance' policies with limited or no underwriting, but these typically provide lower coverage amounts, cost more, and include longer waiting periods. Being honest during underwriting is crucial – non-disclosure can result in claim denial later. Pre-existing conditions don't automatically disqualify you, but they'll affect your premium or may be excluded from coverage.