How Underwriting Differs Across UK Life Insurance Providers
Navigating the world of life insurance can feel like a complex journey. You know you need to protect your family's future, but the path to securing the right policy is paved with questions. At the heart of this process lies a critical, often misunderstood, stage: underwriting.
Underwriting is the engine room of the insurance industry. It’s the detailed process an insurer uses to evaluate the risk of insuring you. Think of it like a bespoke tailor taking your precise measurements before cutting the cloth for a new suit. The better the measurements, the better the fit. In insurance, this 'fit' determines whether you'll be offered a policy, what it will cover, and crucially, how much it will cost.
While the goal is the same for all insurers—to price risk accurately—their methods can vary dramatically. This is where understanding the subtle but significant differences between major providers becomes your secret weapon. A health condition or lifestyle choice that leads to a high premium with one insurer might be viewed more favourably by another.
WeCovr explains how Aviva, Legal & General, and Vitality assess risk differently
As expert protection advisers, we at WeCovr navigate these underwriting nuances daily. To demystify the process, we’re taking a closer look at three of the UK's leading life insurance providers: Aviva, Legal & General, and Vitality. Each has a distinct philosophy for assessing risk, and knowing these differences can save you time, money, and stress.
- Aviva: The seasoned veteran. With a history stretching back over 300 years, Aviva’s approach is built on a deep well of data and experience. They are known for their thorough, comprehensive, and often case-by-case assessment.
- Legal & General: The streamlined giant. As one of the UK’s largest providers of life cover, their model is built for efficiency and scale, leveraging technology to offer rapid decisions for a vast number of applicants.
- Vitality: The modern innovator. Vitality has disrupted the market by linking insurance directly to your health and wellness, creating a dynamic model where your actions can influence your premiums.
By the end of this guide, you’ll have a clear picture of how these industry leaders operate, empowering you to make a more informed decision about protecting what matters most.
The Core Pillars of Life Insurance Underwriting
Before we delve into the specifics of each provider, it’s essential to understand the fundamental building blocks of underwriting. Almost every insurer in the UK will scrutinise the following five areas of your life.
1. Your Medical History
This is the cornerstone of any application. Insurers need a complete picture of your health, both past and present. They will ask about:
- Chronic Conditions: Such as diabetes, heart conditions, asthma, or epilepsy.
- Significant Past Illnesses: Including cancer, stroke, or heart attacks.
- Mental Health: Disclosures about anxiety, depression, stress, or other conditions are now standard. Honesty here is paramount.
- Measurements: Your Body Mass Index (BMI), blood pressure, and cholesterol levels.
- Family Medical History: A history of hereditary conditions (like certain cancers or heart disease) in close relatives, particularly before the age of 65, can be a risk factor.
According to the Office for National Statistics (ONS), conditions like heart disease, dementia, and certain cancers remain the leading causes of mortality in the UK. Insurers use this national data, combined with your personal details, to build a risk profile.
2. Your Lifestyle Choices
How you live your day-to-day life has a direct impact on your health and, therefore, your policy.
- Smoking and Vaping: This is one of the most significant rating factors. Smokers can expect to pay at least double the premium of a non-smoker. Most insurers classify you as a non-smoker only if you have been nicotine-free (including patches and vaping) for at least 12 months.
- Alcohol Consumption: You'll be asked about your weekly unit intake. Consistently high consumption can indicate a higher risk of liver disease and other health complications.
- Recreational Drug Use: Any past or present use must be declared.
3. Your Occupation
What you do for a living can also affect your risk profile. An office-based accountant faces far fewer daily physical risks than a scaffolder or a commercial diver. The Health and Safety Executive (HSE) reports that sectors like construction and agriculture have statistically higher rates of fatal accidents, and insurers factor this into their calculations.
4. Your Hobbies and Pursuits
If your weekends involve mountaineering in the Himalayas, cave diving, or amateur motorsports, insurers will want to know. These activities carry a higher risk of accident or injury, which may lead to a premium loading or an exclusion on the policy for claims related to that specific hobby.
5. Financial Underwriting
Insurers also need to ensure the amount of cover you're applying for (the 'sum assured') is reasonable and justifiable. This prevents moral hazard and over-insurance. For large policies, they may ask for evidence of income or liabilities (like a mortgage) to justify the figure.
A Deep Dive into Aviva's Underwriting Philosophy
Approach: Comprehensive, Data-Driven, and Considered
As one of the UK’s most established insurers, Aviva’s underwriting process is best described as meticulous. They leverage centuries of data to inform their decisions, allowing them to take a granular, case-by-case view of applicants. This can be a significant advantage for individuals with more complex medical histories.
Medical Underwriting at Aviva
Aviva is known for its detailed and in-depth medical questioning. While this may mean the application process takes a little longer, it also means they are often willing to consider applicants that other, more automated systems might simply decline.
- Complex Health Conditions: Aviva has a strong reputation for considering cover for individuals with well-managed chronic conditions. For example, someone with Type 2 diabetes who can demonstrate excellent control via recent HbA1c readings might secure terms that are more favourable than expected.
- Mental Health: They have made significant strides in their approach to mental health. Rather than a blanket approach, they will dig into the specifics: the date of the last episode, any time taken off work, and the nature of the treatment. A single, historic episode of mild anxiety is treated very differently from a recent, severe diagnosis.
- GP Reports (GPRs): Aviva is more likely to request a report from your GP than some other insurers. While this adds time, it allows their human underwriters to get the full context behind your medical history, which can often work in your favour.
Lifestyle, Occupation, and Hobbies
Aviva maintains a comprehensive 'risk book' for various occupations and hobbies. Their long history means they have priced risk for a vast array of scenarios. If you have a slightly unusual job or a niche hobby, their experience can be invaluable in providing an accurate and fair assessment.
Aviva's Key Differentiator: Their willingness to manually underwrite complex cases. Where a computer-based system might say 'no', an experienced underwriter at Aviva might look at the full picture and say 'yes, with these specific terms'. This makes them a strong contender for anyone with a health history that isn't perfectly straightforward.
Real-Life Example:
- Applicant: Sarah, a 48-year-old teacher who had breast cancer five years ago. She has been in full remission for four years.
- Aviva's Likely Approach: Many automated systems might decline this application due to the cancer history within the last five years. Aviva, however, would likely request a GPR and a specialist's report. Seeing that it was an early-stage cancer, successfully treated, and with a positive prognosis, their underwriters could offer a policy. The premium would be higher (a 'loading') for a set number of years, but crucially, they would offer cover where others might not.
Legal & General's Approach: Efficiency and Scale
Approach: Streamlined, Tech-Driven, and Competitive
Legal & General (L&G) is a powerhouse in the UK protection market, often writing the most new policies in any given year. To manage this volume, their process is built around speed and efficiency, heavily underpinned by sophisticated technology and automated underwriting engines.
Medical Underwriting at Legal & General
L&G's primary goal is to give a large proportion of applicants an instant decision. Their online application journey is slick and intelligent, using a dynamic question set that adapts based on your answers.
- Automated Decisions: For younger, healthier applicants with no significant medical history, it's possible to get a decision and have your policy active within minutes. Their system is finely tuned to identify 'standard' risks and approve them immediately.
- Clear-Cut Guidelines: L&G's model often works with clearer, more defined thresholds. For instance, they might have a specific BMI range where standard rates apply. If you fall outside this, it may trigger a set premium increase or a referral for manual review. This can provide certainty but may be less flexible than Aviva's approach.
- Focus on Core Risks: Their system is excellent at pricing common risks. For conditions like well-managed high blood pressure or cholesterol, their automated engine can often generate a competitive quote instantly.
Lifestyle, Occupation, and Hobbies
L&G has a very clear and accessible underwriting guide that brokers use. This means for many common occupations (including skilled trades) and hobbies, it’s possible to know upfront what the likely decision will be. Their efficiency shines here, removing ambiguity from the process.
Legal & General's Key Differentiator: Speed and price competitiveness, especially for individuals who fit the 'standard risk' profile. Their investment in technology makes the application journey one of the fastest and smoothest in the market.
Real-Life Example:
- Applicant: Tom, a 32-year-old software developer, non-smoker, with no health issues and a clean family history.
- L&G's Likely Approach: Tom is the ideal candidate for L&G's system. He would complete the online application in about 15 minutes. The automated underwriting engine would analyse his data instantly, recognise him as a very low risk, and approve his policy on the spot at a highly competitive market rate. He could be covered before he's even finished his cup of tea.
Vitality's Dynamic Model: The Wellness Revolution
Approach: Interactive, Proactive, and Personalised
Vitality turned the traditional insurance model on its head. They operate on the principle that your health isn't static, so your insurance policy shouldn't be either. They built a system that actively rewards you for living a healthier life.
Initial Underwriting at Vitality
The initial application process at Vitality is similar to other providers. They assess your health, lifestyle, and family history to determine a starting premium. However, that's where the similarity ends. Their unique proposition is what happens after the policy starts.
The Vitality Programme: A Partnership in Health
Vitality’s model is built around their "Active Rewards" programme.
- Engage and Track: You link a fitness tracker (like a Garmin, Fitbit, or Apple Watch) or use their app to log your healthy activities. This can be anything from daily steps and gym workouts to mindfulness sessions and health check-ups.
- Earn Points: These activities earn you Vitality points. The more you do, the more points you accumulate.
- Improve Your Status: The points determine your Vitality status, ranging from Bronze up to Platinum.
- Unlock Rewards & Savings: A higher status unlocks a range of immediate rewards, such as weekly cinema tickets or free coffee. Most importantly, it can lead to significant reductions in your insurance premium at your annual review.
Vitality's Key Differentiator: The dynamic relationship between your health and your premium. No other major insurer gives you this level of direct control to lower your costs through positive lifestyle changes. It transforms insurance from a passive safety net into an active partnership for your well-being. This proactive approach is something we champion at WeCovr, which is why we offer our clients the complimentary CalorieHero app to further support their health goals.
Real-Life Example:
- Applicant: Maria, a 40-year-old office manager with a BMI of 31, placing her in the 'obese' category.
- Vitality's Likely Approach: A traditional insurer would apply a significant, fixed premium loading due to her BMI. Vitality might apply a similar initial loading. However, they would also present her with a clear path to reduce it. By engaging with the Vitality Programme, increasing her step count, and improving her diet to lower her BMI over the year, Maria could earn enough points to reach Gold status. At her next policy anniversary, her premium could be reduced, rewarding her tangible efforts to improve her health.
Comparing Underwriting Outcomes: A Table-Based Analysis
To truly understand the impact of these different philosophies, let's compare how each provider might treat a range of common applicant profiles.
| Applicant Profile | Aviva's Likely Approach | Legal & General's Likely Approach | Vitality's Likely Approach |
|---|---|---|---|
| Healthy 35-Year-Old | Standard rates. Smooth process but may not be the fastest. | Instant online acceptance. Likely very competitive on price. | Standard rates, with the opportunity to reduce them via the wellness programme. |
| 50-Year-Old with High BMI (32) | Likely to request a nurse screening. A premium loading would apply, based on the full medical picture. | A set premium loading applied automatically by the system. Clear but potentially less nuanced. | An initial loading, but with a clear pathway to reduce the premium by lowering BMI and being active. |
| 40-Year-Old Smoker (10/day) | A significant premium loading. They have extensive data on smokers and price accordingly. | A very competitive premium for smokers is often a key market for them. Quick decision. | A high initial premium, but with significant discounts offered for quitting and using cessation support. |
| 30-Year-Old with Past Depression | Will ask detailed questions about dates, severity, and treatment. May offer standard terms if the issue was mild and historic. | The automated system may flag this for manual review. Outcome depends on the specifics, aiming for a quick decision. | Will assess the history, but also focus on positive wellness factors like exercise, which is known to aid mental health. |
| Self-Employed Plumber (45) | Standard assessment of occupation. No major issues expected. | Clear occupational category. Standard rates are likely if health is good. Fast process is ideal for a busy sole trader. | The active nature of the job would earn Vitality points easily, helping to keep premiums low. |
| Company Director seeking £2m cover | Will conduct thorough financial underwriting to justify the sum assured. Process is robust. | Efficient financial underwriting process. Can handle large sums assured, often very quickly. | Will assess financials. The wellness benefits can be an attractive perk for a high-value director. |
Disclaimer: This table is for illustrative purposes only. The final underwriting decision and premium can only be determined upon a full application.
Special Considerations for Business Owners and the Self-Employed
The need for protection extends beyond the personal realm. For company directors, freelancers, and the self-employed, insurance plays a vital role in ensuring business continuity. The underwriting approach of different insurers is just as critical here.
Key Person Insurance
This policy protects a business from the financial fallout of losing a crucial employee (the 'key person') to death or critical illness. The underwriting is on the key person's health and lifestyle.
- Aviva's thoroughness can be an asset if the key person has a complex health profile, as they are more likely to dig for details to get the cover placed.
- Legal & General's speed is perfect when a business needs to get cover in place quickly, perhaps to satisfy a lender or investor.
- Vitality's wellness programme can be a unique benefit for the business, encouraging a key director to stay healthy, which is a win-win for everyone.
Relevant Life Policies
This is a tax-efficient death-in-service benefit for individual employees, including directors. It's paid for by the business but pays out to the employee's family. As the underwriting is on the individual, the choice of insurer should be guided by their personal health profile, just as with a personal policy.
Executive Income Protection
For a company looking to protect a director's income, this is a must. The policy pays a monthly benefit if the insured person is unable to work due to illness or injury.
- Underwriting for income protection is often more detailed than for life cover, focusing on occupation and medical history.
- Insurers like Aviva offer robust, comprehensive cover with a strong claims history.
- Vitality again offers a unique angle, with benefits that can help an employee return to work faster through wellness and rehabilitation support.
Freelancers and Sole Traders
For the self-employed, personal income protection is arguably the single most important policy. If you can't work, your income stops. When seeking cover:
- Definition of Incapacity: Check this carefully. 'Own Occupation' is the gold standard, meaning the policy pays out if you can't do your specific job.
- Deferred Period: This is the time between when you stop working and when the policy starts paying. A shorter period means higher premiums.
- Insurer's View: Some insurers have more favourable views of certain trades. An expert broker can guide a self-employed electrician or nurse to the provider that understands their occupational risks best.
Navigating the Maze: Why an Expert Broker is Your Best Ally
As you can see, the underwriting landscape is complex and varied. The "cheapest" quote you see on a comparison website might not be the actual price you pay once your application has been underwritten. It might not even be from an insurer who will accept you.
This is where an independent insurance broker like WeCovr provides indispensable value.
- We Know the Market: We don't just know Aviva, L&G, and Vitality. We work with a vast panel of UK insurers and understand their specific appetites. We know who is currently offering the best terms for someone with a high BMI, who is most lenient with a specific medical condition, and who has the most competitive rates for smokers.
- We Tailor the Application: We help you position your application in the best possible light, ensuring all questions are answered honestly and accurately. By knowing what each insurer looks for, we can pre-empt issues and select the provider most likely to give you the most favourable outcome.
- We Save You Time and Money: Instead of you applying to an insurer directly and risking a decline or a high rating (which you must then declare on future applications), we do the research for you. We match your unique circumstances to the right insurer from the start, saving you from a frustrating and potentially costly process of trial and error.
Choosing the right protection is one of the most important financial decisions you'll make. Getting it wrong can be the difference between peace of mind and financial hardship for your loved ones.
Conclusion: Making the Right Choice for Your Protection
The world of insurance underwriting is far from uniform. The provider you choose has a distinct personality, a unique way of viewing the world and assessing risk.
- Aviva is the wise, experienced hand, offering a thorough and considered process that can be invaluable for those with a non-standard health profile.
- Legal & General is the master of efficiency, providing speed, scale, and competitive pricing for the majority of people in good health.
- Vitality is the forward-thinking coach, empowering you to take an active role in your health and rewarding you for your efforts.
There is no single "best" insurer. The best insurer is the one that best fits you—your health, your lifestyle, your occupation, and your priorities. By understanding how these giants of the industry differ, and by partnering with an expert who can navigate those differences on your behalf, you can secure the right cover, at the right price, and with the confidence that your family's future is protected.
Do I need to declare a minor illness I had years ago?
What happens if I start smoking after my policy starts?
Will my travel plans affect my life insurance application?
How does underwriting for Critical Illness Cover differ from Life Insurance?
Can I get life insurance if I have been declined before?
Is it better to apply directly to an insurer or use a broker?
Why life insurance and how does it work?
What is Life Insurance?
Life insurance is an insurance policy that can provide financial support for your loved ones when you or your joint policy holder passes away. It can help clear any outstanding debts, such as a mortgage, and cover your family's living and other expenses such costs of education, so your family can continue to pay bills and living expenses. In addition to life insurance, insurance providers offer related products such as income protection and critical illness, which we will touch upon below.How does it work?
Life insurance pays out if you die. The payout can be in the form of a lump sum payment or can be paid as a replacement for a regular income. It's your decision how much cover you'd like to take based on your financial resources and how much you'd like to leave to your family to help them deal with any outstanding debts and living expenses. Your premium depends on a number of factors, including your occupation, health and other criteria.The payout amount can change over time or can be fixed. A level term or whole of life policy offers a fixed payout. A decreasing term policy offers a payout that decreases over the term of the cover.
With critical illness policies, a payout is made if you’re diagnosed with a terminal illness with a remaining life expectancy of less than 12 months. While income protection policies ensure you can continue to meet your financial commitments if you are forced to take an extended break from work. If you can’t work because you’ve had an accident, fallen sick, or lost your job through no fault of your own, income protection insurance pays you an agreed portion of your salary each month.
Income protection is particularly helpful for people in dangerous occupations who want to be sure their mortgage will always be covered. Income protection only covers events beyond your control: you’re much less likely to be covered if you’re fired from your job or if you injure yourself deliberately.
Questions to ask yourself regarding life insurance
Just ask yourself:👉 Who would pay your mortgage or rent if you were to pass away or fall seriously ill?
👉 Who would pay for your family’s food, clothing, study fees or lifestyle?
👉 Who would provide for the costs of your funeral or clear your debts?
👉 Who would pay for your costs if you're unable to work due to serious illness or disability?
Many families don’t realise that life, income protection and critical illness insurance is one of the most effective ways to protect their finances. A great insurance policy can cover costs, protect a family from inheriting debts and even pay off a mortgage.
Many would think that the costs for all the benefits provided by life insurance, income protection insurance or critical illness insurance are too high, but the great news is in the current market policies are actually very inexpensive.
Benefits offered by income protection, life and critical illness insurance
Life insurance, income protection and critical illness insurance are indispensable for every family because a child loses a parent every 22 minutes in the UK, while every single day tragically 60 people suffer major injuries on the UK roads. Some people become unable to work because of sickness or disability.Life insurance cover pays out a lump sum to your family, loved ones or whomever you choose to get the money. This can be used to secure the financial future of your loved ones meaning they would not have to struggle financially in the event of your death.
If it's a critical illness cover, the payout happens sooner - upon diagnosis of a serious illness, disability or medical condition, easing the financial hardship such an event inevitably brings.
Income protection insurance can be very important for anyone who relies on a pay check to cover their living costs, but it's especially important if you’re self-employed or own a small business, where your employment and income is a bit less stable. It pays a regular income if you can't work because of sickness or disability and continues until you return to paid work or you retire.
In a world where 1 in 4 of us would struggle financially after just four weeks without work, the stark reality hits hard – a mere 7% of UK adults possess the vital shield of income protection. The urgency of safeguarding our financial well-being has never been more palpable.
Let's face it – relying on savings isn't a solution for everyone. Almost 25% of people have no savings at all, and a whopping 50% have £1,000 or less tucked away. Even more concerning, 51% of Brits – that's a huge 27 million people – wouldn't last more than one month living off their savings. That's a 10% increase from 2022.
And don't even think about state benefits being a safety net. The maximum you can expect from statutory sick pay is a mere £109.40 per week for up to 28 weeks. Not exactly a financial lifeline, right?
Now, let's tackle a common objection: "But I have critical illness insurance. I don't need income protection too." Here's the deal – the two policies apply to very different situations. In a nutshell:
- Critical illness insurance pays a single lump sum if you're diagnosed with or undergo surgery for a specified potentially life-threatening illness. It's great for handling big one-off expenses or debts.
- Income protection, on the other hand, pays a percentage of your salary as a regular payment if you can't work due to illness or injury. It's the superhero that tackles those relentless monthly bills.
Types of life insurance policies
Common reasons for getting a life insurance policy are to:✅ Leave behind an amount of money to keep your family comfortable
✅ Protect the family home and pay off the mortgage in full or in part
✅ Pay for funeral costs
Starting from as little as a couple of pounds per week, you can do all that with a Life Policy.
Level Term Life Insurance
One of the simplest forms of life insurance, level term life insurance works by selecting a length of time for which you would want to be covered and then deciding how much you would like your loved ones to receive should the worst happen. Should your life insurance policy pay out to your family, it would be in a lump sum amount that can be used in whatever way the beneficiary may wish.
Decreasing Term Life Insurance
Decreasing term life insurance works in the same way as level term, except the lump sum payment amount upon death decreases with time. The common use for decreasing term life cover is to protect against mortgage repayment as the lump sum decreases along with the principal of the mortgage itself.
Increasing Term Life Insurance
Increasing term life insurance aims to pay out a cash sum growing each year if the worst happens while covered by the policy. With increasing term life cover amount insured increases annually by a fixed amount for the length of the policy. This can protect your policy's value against inflation, which could be advantageous if you’re looking to maintain your loved ones’ living standards, continue paying off your mortgage in line with its repayment schedule and cover your children’s education fees.
Whole of Life Insurance
Whereas term life insurance policies only pay out if you pass away during their term, whole of life insurance pays out to your beneficiaries whenever this should happen. The most common uses for whole life insurance are to cover the costs of a funeral or as a vehicle for your family's inheritance tax planning.
Family Income Benefit
Family income benefit is a somewhat lesser-known product in the family of life insurance products. Paying out a set amount every month of year to your beneficiaries, it is the most cost-effective way of maintaining your family's living standards to an age where you'd expect them to be able to support themselves financially. The most common use would be for a family with children who are not working yet so are unable to take care of themselves financially.
Relevant Life Insurance
Relevant Life Insurance is a tax-efficient policy for a director or single employee. A simple level term life insurance product, it is placed in a specific trust to ensure its tax efficiency. The premiums are tax deductible and any benefit payable should a claim arise is also paid out tax free, which makes it an attractive product for entrepreneurs and their businesses.
Important Fact!
We can look at a more suitable option mid-term!
Why is it important to get life insurance early?
👉 Many people are very thankful that they had their life, income protection, and critical illness insurance cover in place before running into some serious issues. Critical illness and income protection insurance is as important as life insurance for protecting your family's finances.👉 We insure our cars, houses, bicycles and even bags! Yet our life and health are the most precious things we have.
Easily one of the most important insurance purchases an individual or family can make in their lifetime, the decision to buy life, income protection, critical illness and private medical health insurance can be made much simpler with the help of FCA-authorised advisers. They are the specialists who do the searching and analysis helping people choose between various types of life insurance policies available in the market, including income protection, critical illness and other types of policies most suitable to the client's individual circumstances.
It certainly won't do any harm if you speak with one of our experienced FCA-authorised insurance partner experts who are passionate about advising people on financial matters related to life insurance and are keen to provide you with a free consultation.
You can discuss with them in detail what affordable life, income protection, critical illness or private medical health insurance plan for the necessary peace of mind they would recommend! WeCovr works with some of the best advisers in the market.
By tapping the button below, you can book a free call with them in less than 30 seconds right now:
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Who Are WeCovr?
WeCovr is an insurance specialist for people valuing their peace of mind and a great service.👍 WeCovr will help you get your private medical insurance, life insurance, critical illness insurance and others in no time thanks to our wonderful super-friendly experts ready to assist you every step of the way.
Just a quick and simple form and an easy conversation with one of our experts and your valuable insurance policy is in place for that needed peace of mind!