Underwriting

Insurance

Underwriting is the insurer's process of evaluating risk before issuing a policy, determining whether to accept the applicant and at what premium. Life insurance underwriting includes medical exam (blood, urine, sometimes EKG), prescription history review, MIB report (medical information bureau), and driving records. Health, age, lifestyle (smoking, dangerous hobbies), and occupation drive ratings: preferred plus, preferred, standard, substandard. Underwriting categories materially affect cost — a smoker pays 2-3× a non-smoker. Insurance shopping should occur before health changes; locking in low rates while young and healthy protects future insurability. Some policies offer guaranteed issue (no underwriting) but at much higher premiums.