Preliminary underwriting if you or your child has a medical condition

Last updated on September 25th, 2018 at 10:13 pm


I recently met with a friend’s sister. Due to her medical condition, AIA loaded her CI plan application with extra premiums of 50% and pending her acceptance. I was drawn into the case to find alternatives for her or at least help her validate that the loading given is fair. I offered to start with the preliminary underwriting process with 3 insurers. This post is to shed more light on this seldom used process.

Preliminary underwriting is a process to find out from which insurers can offer you or your child favourable terms in view of your pre-existing condition.  Some insurers do it as an anonymous process whereby you do not need to fill in particulars and sign.


What situations should you start with the Preliminary Underwriting process 

  1. You are unhappy about your current application outcome and would like to seek alternatives
  2. You are considering life insurance for your child but he/she has a congenital health condition.
  3. You are considering life insurance for yourself but you have a serious/chronic health condition**


** Why serious/chronic only?

If your condition is not serious/chronic (such as a cyst or an injury), insurers in general give a simple exclusion in coverage to that condition. It is only when it is a serious/chronic condition that we do not know if your policy application will be rejected.


Especially for your child, it is important to avoid getting deferred/rejected for an application.

From experience, insurer’s seem to be cautious when it comes to congenital health conditions with babies and young children as development of that medical condition is uncertain.

An example will be heart murmur (which is fairly common).


In the event your child’s application is deferred or rejected, it leaves a permanent record when it comes to a future insurance application. The preliminary underwriting (some insurers allow an anonymous process) is to prevent any records of it.


Any outcome from this process is non-binding. Sometimes the insurer gives an indicative outcome (subjected to their clauses) such as a loading of premium. Other times, they decline to offer a conclusion.

This is an outcome from another preliminary underwriting and the client has to produce an up to date medical report first as the reports submitted were a few years back (even though the results were favourable).



We can help you with this process and by working with multiple insurers, you would save time in getting to the best offer. There is NO cost in this approach.

On a last note, it is important to have recent medical reports to facilitate this process.


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The views and opinions expressed in this article are those of the author and do not represent the views of any other organisation.

Josh Tan Jian Liang (CHFC) Principal Author

REVIEWS: https://www.josh-tan/wall-of-reviews. Practising financial planner with Promiseland Independent Pte Ltd. EXPERIENCE: More than 12years. Josh Tan is a young parent, speaker, author and founder of TheAstuteParent.