Underwriting Factors of Life Insurance

Published: | Updated: December 21, 2017

Definition - What does Underwriting Factors of Life Insurance mean?

The underwriting factors of life insurance are all the factors that an insurance company uses to make a decision about whether or not to issue a life insurance policy and, if so, at what price. Underwriting factors of life insurance can include things such as age, weight, tobacco use, total cholesterol levels, heart disease, diabetes, and family history of diseases.

Insuranceopedia explains Underwriting Factors of Life Insurance

It is critical for life insurance companies to be able to accurately measure the underwriting factors of life insurance. If too many policies are written for people who are high risks, then the insurance company could lose a lot of money. Having certain factors, such as being over 80, can make a prospective policyholder a very high risk, making it unlikely that they would get a life insurance policy.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

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