Insurability

What Does Insurability Mean?

Insurability refers to the extent to which an individual or company is considered insurable by an insurance provider. In other words, it is an insurance company’s assessment of potential risk. Each insurance company has its own methods for evaluating insurability, which often include factors such as age, weight, health, and other relevant statistics.

Insuranceopedia Explains Insurability

Insurability is especially important for life insurance, as a person with low insurability is considered to have a higher risk of mortality. This implies a greater likelihood that the life insurance company will need to pay out a claim. Factors that can decrease insurability for life insurance applicants include advanced age, heart disease, cancer, a risky lifestyle, and similar conditions. Conversely, factors that can increase insurability include youth, a healthy lifestyle, physical fitness, and the absence of major illnesses.