What does Life Insurance Underwriting mean?

Elaborate the meaning of Life Insurance Underwriter.

It is very important to know the profile before you opt for it. It is very important to understand is. Life insurance underwriting is the process of accepting the proposal of the customer based on the rules and regulations laid by the insurance company. There is a procedure set by the insurance companies that one must follow before accepting any new business. Underwriting department plays a very vital role in any insurance company. Whenever there is an arrival of a new proposal in the insurance company, its underwriting department studies the proposal in regards to the criteria laid by the insurance company and then come to the conclusion of rejection or acceptance of the respective proposal. If they find any flaw or fault in the proposal they ask the agent to take corrective actions for the same.

One cannot claim whatever he desires from an insurance company. The issue of the policy is dependent on income of the insured individual and whether he can actually pay the premium over the years. Here comes an Underwriter into picture, as once they are satisfied that all conditions have been met as per the policies of the company they go ahead to accept the premium and issue the policy. To put in a simple line, Underwriting is the decision making process during which the company decides whether to insure or not and if yes then at what rate.