The basics of insurance are pretty simple: you pay a premium to keep coverage so that if anything happens to you, your policy will be paid out. But how does that work? Where does the money come from? Who decides if you can have it--or how much? That’s where the underwriter comes in.
What Is Underwriting?
Large financial institutions like banks and insurance underwriting companies underwrite your policy. This means they take on the responsibility of making the pay out in the event your policy needs to be claimed. Underwriters must manage a large sum of money used to underwrite many people’s policies, so there must be a balance between ensuring they continue to maintain the money needed for the program itself and paying out policies to any policyholder who required one.
When Is A Policy Underwritten?
That said, many people with chronic illness, disability, or lifestyle factors find that they have trouble qualifying for an insurance policy that demands full medical underwriting. At 20/20 we want accessible insurance for all, and do not require an invasive medical exam.
How Do Underwriters Approve A Loan?
Why do people get turned down for insurance? We’ve already mentioned that some companies will limit the coverage of disabled people or those with pre-existing conditions to maintain the long-term viability of the insurance program. But health isn’t the only factor companies look at when deciding whether to insure someone--and for how much. While you can be denied outright for a policy, it is more likely that the company will offer you a particular amount of coverage at a specific premium based on your individual circumstances.
In the case of an actual mortgage, insurers will want to know you have been responsible with your finances and can handle a large debt load. While life insurance will be more impacted by your health, it is worth mentioning that maintaining a good credit score can help your overall financial picture, such as how much mortgage you’ll qualify for and thus how much mortgage life insurance can be offered.
Who Underwrites 20/20 Mortgage Life Insurance?
20/20 Mortgage Life Insurance is underwritten by Assumption Life, one of the oldest and most well-respected insurance companies in Canada. Founded in 1903, Assumption Life lists its top three corporate values as its clients, innovation, and integrity. This perfectly aligns with 20/20 Mortgage Life Insurance’s own mission to provide accessible insurance through innovation in the insurance process and products themselves. And knowing Assumption is committed to integrity, we can trust our policies are in good hands. They have a reputation for putting their clients first.
A.M. Best, one of the oldest independent rating agencies specializing in the evaluation of the financial health and creditworthiness of insurance and reinsurance companies worldwide, recently awarded Assumption Life an A- (excellent) rating for the 16th consecutive year. Assumption Life is well-capitalized, with a solvency ratio that reached 242% in 2015, well above the minimum 150% standard set by the Office of the Superintendent of Financial Institutions Canada (OSFI). This means if you need to make a claim, you can trust it will be paid out.
To learn more about Assumption Life, visit their website.
Contact Us
We are proud to partner with Assumption Life to offer innovative, accessible insurance products. We have a variety of products to ensure the right coverage for you and your family. Contact us to discuss your options.
