Life Insurance Underwriting: Facts Considered

Life insurance underwriting is the process of determining the risk of providing your life insurance coverage and determines your cost.

Health Factors

If you smoke, suffer from obesity, or have a chronic illness like diabetes, you will have a higher premium based on the higher risk.  Most insurance policies require at minimum a health questionnaire and most will also require an exam.

Life Habits

People who drink heavily, are involved in dangerous or high risk hobbies or careers, or otherwise place themselves at additional risk will also pay higher premiums than those who have a safer lifestyle. The insurance company will analyze blood test results to determine alcohol consumption.

Gender and Other Factors

Statistically, women live longer than men and will therefore have lower premiums. Obviously, the younger you are, the less likely you are statistically to die, so premiums are partially determined based on your age.

Reduce Costs

You can reduce the costs of your life insurance by reducing the risks over which you have control. Lose weight. Quit smoking.  Address health concerns. Be sure to contact your agent if you have made changes in your lifestyle that would reduce your risk.


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