Medically Underwritten (MU)

Medically underwritten (MU) refers to the process used by insurers to evaluate an applicant’s health history before approving coverage and determining eligibility, premiums, and benefit limits. In a medically underwritten plan, you must answer health questions, disclose pre-existing conditions, and often complete a medical questionnaire or provide additional documentation

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This underwriting allows the insurer to assess risk accurately and often results in more comprehensive coverage, higher benefit maximums, and lower premiums for individuals in good health. Because the plan is tailored based on medical history, approval is not guaranteed, and some conditions may be excluded or rated at a higher cost.

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Medically underwritten plans are common in personal health insurance, life insurance, and disability coverage. They are often compared to guaranteed issue (GI) or guaranteed acceptance plans, which do not require medical questions but usually have lower coverage limits and higher premiums to offset risk.

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Example:

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If you apply for a medically underwritten health plan and disclose that you have asthma, the insurer may approve coverage but exclude expenses related to that condition or set a higher premium.

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What to Watch For:

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Answer all medical questions honestly and completely. Providing inaccurate or incomplete information can lead to denied claims or cancellation of coverage. If you are transitioning from a group plan, apply promptly while you are still eligible for simplified or guaranteed options in case a medically underwritten plan is not approved.