Underwriting Factors Of Life Insurance

What Does Underwriting Factors Of Life Insurance Mean?

The underwriting factors of life insurance are the criteria an insurance company uses to determine whether to issue a policy and, if so, at what price. These factors can include age, weight, tobacco use, total cholesterol levels, heart disease, diabetes, and family history of diseases.

Insuranceopedia Explains Underwriting Factors Of Life Insurance

It is crucial for life insurance companies to accurately assess the underwriting factors when issuing policies. If too many policies are granted to high-risk individuals, the insurance company could face significant financial losses. Certain factors, such as being over 80 years old, can make a prospective policyholder a high risk, which may make it unlikely for them to qualify for a life insurance policy.