Non-Medical Underwriting

Non-medical underwriting assesses your application from a health questionnaire and lifestyle declaration only, with no medical examination or pathology tests. It is the standard approach for younger applicants and moderate sums insured (typically under $500,000).

You still have the same duty of disclosure: every question must be answered truthfully and completely.

How insurers assess the application

Insurers use statistical models and actuarial data to score your responses across:

• Medical history and current health
• Medications and family history
• Occupation and hobbies
• Smoking, alcohol, and recreational activities

This approach often allows same-day or next-day policy issue for straightforward applications.

When non-medical underwriting applies

Australian insurers typically use it when:

• The applicant is under age 50 to 55
• The sum insured is below the insurer's threshold
• The occupation is standard
• No significant medical red flags appear in the questionnaire

The trade-off

Premiums can be slightly higher than fully underwritten policies for very healthy applicants, because non-medical pricing builds in a margin for unknown health factors.

ASIC's regulatory guidance also requires clear disclosure when policies use deferred underwriting (assessment at claim time rather than at application).

Recent innovations

• Tele-underwriting combining questionnaires with a brief phone interview
• Accelerated underwriting using third-party data sources

The Insurance Contracts Act 1984 protections still apply, including the three-year contestability period during which the insurer can investigate non-disclosure if a claim arises.