De-jargoned: Underwriting2 min read . Updated: 30 Dec 2013, 06:46 PM IST
Underwriting helps the insurer gauge the risk and price their products accordingly
Underwriting is a critical aspect of insurance. It’s a process that financial companies use to assess your eligibility to receive their products. In insurance, the concept of underwriting helps the insurer gauge the risk (of providing you cover) and price their products accordingly. This is why a smoker pays a higher premium in a life insurance policy than a non-smoker, for the same level of sum assured or death benefit. Here’s how all the information you provide impacts the insurance cover that you get.
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