Underwriting Guide
The premiums on your life insurance policy will be based on a complicated formula that calculates your risk for early death. This is part of what is called the underwriting process, or risk classification. The underwriting process will determine how much you will pay for your life insurance policy based on what kind of a risk you pose.
Factors Examined in Underwriting Process
In determining how much your life insurance policy premium will be, the insurance company will examine the following factors:
- Your medical history
- Your present health and medical condition
- Your occupation
- Your hobbies and interests
- Your gender
- Your age
- Lifestyle habits (e.g., tobacco use)
Risk Classifications
Based on the aforementioned factors, you will be classified as a preferred, standard, rated, or declined risk. Preferred means you have a below-average risk of dying prematurely, standard means your risk is average, and so on. Usually, the higher your risk of premature death, the more you will pay on your life insurance policy premium. For more about us, see our home page.
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