Insurance companies’ underwriting practices affect the premiums they charge you now an in the future. Some companies do what is known as “short-form” underwriting. They ask you to answer a few questions on the insurance application about your health. For example, they may want to know if you have been in the hospital in the last 12 months or must use a wheelchair.

Sometimes companies don’t check your medical record until you file a claim. Then they may try to refuse to pay you benefits because of information found in your medical record after you file your claim. This practice is called “post-claims underwriting.” It is illegal in many states. Companies that thoroughly check your health before selling you a policy aren’t as likely to do post-claims underwriting.

Some companies do more underwriting. They may ask more questions, look at your current medical records, and ask your doctor for a statement about your health. These companies may insure fewer people with health problems. Having certain conditions that are likely to mean you’ll soon need long-term care (Parkinson’s disease, for example) probably will mean you can’t by coverage from these companies.

No matter how the company underwrites, you must answer certain questions that the company uses to decide if it will insure you. When you fill out your application, be sure to answer all questions correctly and completely. A company depends on the information you put on your application. If the information is wrong, an insurance company may decide to void, rescind, or cancel your policy and return the premiums you have paid. It can usually do this within two years after you buy the policy. Most states require the insurance company to give you a copy of your application when it delivers the policy. At this, time you can review your answers again. You should keep this copy of the application with your insurance papers.