Understanding the Life Insurance Underwriting Process & Each Type.

If you’ve been shopping for life insurance, then you may be at least somewhat familiar with the fact that insurance companies want to gauge the risk that they’re taking on before they accept an applicant for coverage. The gauging of risk is determined during the life insurance underwriting process.

In doing so, an applicant for a life insurance policy will go through an underwriting process.

Underwriting is a term that is used by life insurance carriers to describe the process of assessing risk—underwriting directly determines the risk that is being taken on.

How does Life Insurance Underwriting Work?

In its most basic sense, insurance underwriting is the process of determining how much risk an applicant for coverage may pose to the insurance company. This task is taken on by an insurance underwriter (or team of underwriters).

So, what is an underwriter looking for?