Insurance is not like other financial products. You need to be eligible to get insured and in insurance parlance, this eligibility assessment is called underwriting. The process of underwriting helps insurers assess the risk before they accept to insure it.
Underwriting, in fact, also helps in pricing the insurance products. For instance, in the case of life insurance, smokers pay a higher premium than non-smokers. Underwriting is an essential part of insurance. Here we explain its process and how all the information you provide impacts the insurance cover that you get.