The underwriting process for long term care insurance evaluates the risk of a proposed insured person becoming dependent on another person for daily assistance. The underwriting requirements for long term care insurance differ from those of life insurance, which evaluates the risk of death, and critical illness insurance, which evaluates the risk of being diagnosed with specific covered conditions.
In particular, Sun RHA is designed to provide a simple application and underwriting process. The evidence questions in the personal history section of the application help identify existing health conditions that represent the highest risk for claims. The application is either approved or declined. Once Sun Life Financial declines an application, the decision is usually final.
The evidence questions cover the following categories: residency, height and weight, and any significant physical limitations, such as the use of assistive devices or the need for assistance or supervision to perform an activity of daily living. It also covers certain chronic health conditions such as multiple sclerosis and diabetes; and it covers smoking status, which relates to certain health conditions such as chronic respiratory disorders and leg ulcers.
Only standard rates apply, and there are no ratings, exclusions or modified offers. Unlike other types of insurance, smoking status does not affect the premium, but it may affect insurability.