Underwriting

Insurance

Underwriting is the process by which an insurer evaluates an applicant's risk profile to decide whether to offer coverage, at what premium, and with what exclusions.

In detail

Life insurance underwriting factors: age, gender, medical history, family history, occupation, lifestyle (smoking adds 25-50% to premium). Loan underwriting: banks assess CIBIL score, income, FOIR, employment stability, and property valuation before approving home loans.

Real-life example

🇮🇳 India example

Amit, 35, non-smoker, applies for Rs 1 Cr term insurance. Quote Rs 11,000/year. Underwriting reveals family history of diabetes -- premium rises to Rs 14,000. Smoker colleague with same profile: Rs 18,500/year.

Frequently asked questions

Can I be denied insurance after underwriting? ▼

Yes. Undisclosed pre-existing conditions or risky lifestyle can lead to decline, exclusions, or premium loading. Always disclose fully -- non-disclosure makes the policy voidable at claim time.