I am 32 years married and residing in Kodagu. I recently applied for a term life insurance plan with a critical illness rider. The insurer made me fill up the proposal form and then undergo a medical check-up. The medical reports came as normal. However, the insurer suggested a 100% loading on premium and then refused me critical illness cover. The insurer said I was overweight. I weigh 130 Kgs and am 6'3”in height. Can they do this?
The insurer is allowed to accept or reject a proposal at the underwriting stage. A counter-offer can be made to you (customer) by the insurer. It is up to your discretion to accept or reject the counter-offer. You can also apply for reconsideration. Your reconsideration request could be supported by either similar cases issued at lower rates or with a rationale to be considered as a standard case. Depending on the case, insurersmay taper down the loading in a counter-offer.Being overweight is the root cause of several chronic and critical illnesses. Insurers thus tend to be conservative in policy issuance for overweight proposers. This could be what the insurer intended to do: 1. It seems your case was not that of outright rejection. So, insurer would have taken you through the medical tests. 2. Insurers typically issue only one counter-offer, and do not revise it at various stages of underwriting. So, they may have waited for the entire process to be completed before making a counter-offer.