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Term Life Insurance Underwriting Factors
What factors are considered by insurance company underwriters in individual
term life insurance
underwriting?
Life insurance
companies each have their own extensive policy and
procedure manuals they are supposed to follow in determining
whether
or not to issue an Individual Life insurance policy, and in pricing
that
policy. The insurer's underwriters typically use a combination of
factors
that experience shows equates with the risk of death (and premature
death).
These factors include the applicant's answers to a series of
questions such as:
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1. |
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age, |
2. |
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sex (except
in several states that require "uni-sex" rates, even
though actuarial data shows women live longer than men), |
3. |
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height and
weight, |
4. |
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health
history (and often family health history -- parents and
siblings), |
5. |
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the purpose
of the insurance (such as for estate planning, or
business or for family protection), |
6. |
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marital
status and number of children, |
7. |
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the amount
of insurance the applicant already has, and any
additional insurance s/he proposes to buy (as people
with far more life insurance than they need tend to be
poor insurance risks), |
8. |
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occupation
(some are hazardous, and increase the risk of death), |
9. |
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income (to
help determine suitability),
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smoking or
tobacco use (this is an important factor, as smokers
have shorter lives), |
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alcohol
(excessive drinking seriously hurts life expectancy),
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certain
hobbies (such as race car driving, hang-gliding,
piloting non-commercial aircraft), and |
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foreign
travel (certain foreign travel is risky).
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TermLifeAmerica.com-
Lewis Fink is licensed as an insurance agent offering Life
Insurance in the following states:
Alabama - AL,
Arkansas - AR,
California - CA,
Colorado - CO,
Connecticut - CT,
Delaware - DE, District of Columbia - DC,
Florida - FL,
Georgia - GA,
Idaho - ID,
Illinois - IL,
Indiana - IN,
Iowa - IA,
Kansas - KS,
Kentucky - KY,
Louisiana - LA,
Maine - ME,
Maryland - MD,
Massachusetts - MA,
Michigan - MI,
Mississippi - MS,
Missouri - MO,
Montana - MT,
Nebraska - NE,
New Mexico - NM,
New Jersey - NJ,
New York - NY,
North Carolina - NC,
North Dakota - ND,
Ohio - OH,
Oklahoma - OK,
Pennsylvania - PA,
Rhode Island - RI,
South Carolina - SC,
South Dakota - SD,
Tennessee - TN,
Texas - TX,
Utah - UT,
Vermont - VT,
Virginia - VA, and
Wisconsin - WI.
Not all insurance products from all insurance companies are available in
all states.
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