What is Life Insurance Underwriting?
It is a fact that the insurance underwriting process is a complex process about gaining life insurance but the problem here is that it needs to be determined whether or not you are eligible for the insurance. If you are indeed qualified, what types of premiums will you be willing to buy. The insurance underwriting is a risk for some because of the tables being made by the actuaries, these people will then take statistics for any possible factor. With the underwriter checking the table, it will help him see who is qualified. Checking for people who are qualified for the premium rates and for those people who are applying for life time protection and annuity.
Before the underwriter issues anything, they will have to check a lot of factors for consideration. You have to understand that the present health condition and your past health issues will be sample of the factors that they check as well as any possibility of having a family disease. They will also consider the credit rating you have as well as the driving record and your lifestyle. The risk factors listed above will have its own assigned numerical value to determine the buyer’s risk with the rates.
The insurance industry will be nothing without the task given for the underwriter to do. If the underwriter is very liberal with the entire guidelines, this can equate to cost the insurance company or service provider a lot of money as well. A lot of potential costumers will also be rejected by an underwriter that is too strict which is also a bad thing for the insurance company. It will be very important to keep a profitable balance for the annuity of the industry, that is why they assign a numerical value for each factor to keep the standard up right for the company. The result of doing this will fall in a simpler way of determining your premiums as well as your qualifications.
You need to understand that being a insurance underwriter, you have to consider the very first application a potential customer will throw at you. This will be about the health history and the present health condition the customer has. The customer has to be honest when filling up this questionnaire. You need to prepare yourself for a series of questions about the history of your family’s health so that they can see if there are any risks about the diseases that run in the family. This is to make sure that everything is being properly checked. You also have to check the jonathan moulton edison risk, this will be very important.