Medical and Non-Medical Underwriting
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Do I have to get a policy that is medically underwritten?
Many Mortgage Insurance Companies offer two different types of mortgage insurance policies—the type that require medical underwriting and the type that do not.
- Medical underwriting: A policy offered by Mortgage Insurance Companies that requires medical underwriting is one that will take all your medical information for that past 5 years and determine your risk to the insurance company based on your medical history. For individuals in perfect health, the Mortgage Insurance Companies that offer this type of policy often have the most affordable policies.
- Non-medical underwriting: Mortgage Insurance Companies that offer policies with no medical underwriting ask no questions about your health. They base their rates solely on your height, weight, age, gender, date of birth, and smoking class. Of course, since people who apply for a non-medically underwritten policy are more likely to be an adverse risk to the insurer, the rates for these policies may be more expensive. They also may not guarantee a death benefit payout unless the policy has been in-force for two or more years.
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