Life insurance underwriting has to do with assessing the suitability of life of an individual or a person whether to accept or reject the risk.
**Why do you think underwriting the important? **
It helps the insurance company to ascertain in the suitability of the proposed life.
It helps the insurance company to also categorise the proposed life.
It also helps the insurance company too either accept or reject the proposed life.
It also helps the insurance company to make profit and refer compensation to the policyholder.
Various categories and classification of Life.
- Standard Life.
- Preferred Life.
- Substandard Life.
- Uninsurable Life.
Standard Life.
This class of persons, their health status is not too bad and it is also not too good, it is on the average.
**Preferred Life. **
Here, the classes of people have a very good health status, i.e they don't drink alcohol or smoke.
**Substandard Life. **
Here, the health status of a person is better than the standard class and it is a little above average.
Uninsurable Life.
Here, the health stays if a person has a very huge financial impact.
**Factors to be considered in the underwriting process. **
Medical report.
Family health history.
Occupation.
Financial status/condition.
Personal health history.
Age and sex.
Daily consumption of alcohol.
Drugs taking.
Medical complaints.
Smoking habit
Residence.
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