Life Insurance: Eligibility & underwriting

Eligibility and underwriting decide whether you are offered cover and at what price. Here is what to expect.

Entry age usually starts from the age of majority for the proposer (some child plans cover minors) and runs up to the mid-60s or beyond, depending on the plan.

Underwriting looks at age, income, occupation, lifestyle, tobacco use and medical history. Larger covers need income proof and medical tests.

Cover is normally limited to a multiple of annual income, depending on age.

Under the Insurance Act, after three years from issue or revival a life policy generally cannot be questioned on grounds of misstatement, except for fraud proven by the insurer. Disclose all facts honestly from day one.