Life insurance companies have a both a difficult and morbid job: figuring out how likely applicants are to die at a given age. This means you’ll be asked questions about your health, family history, lifestyle and depending on the type of life insurance you apply for you may also need to take a medical exam. Here’s what you need to know about the life insurance underwriting process.

What is life insurance underwriting?
Underwriting is the process a life insurance company uses to decide whether you’re eligible for a policy and establish your risk factor and premium. This process is carried out by an underwriter, who’s job is to analyze risk. Because the underwriting process varies by policy; it may be as quick as 24 hours or as long as 4 weeks.

What is your risk factor?
When you apply for life insurance your application will contain various questions relating to your health, family medical history, habits, and in some cases financials or what you do for a living. Some policies, known as fully-underwritten policies, will require a medical exam but at no cost to you. This medical exam is much like an annual physical where a nurse draws blood, measures your height, weight, blood pressure, etc. It is usually done in the comfort of your home or office and at your convenience.

Whether your policy requires a medical exam or just a questionnaire, these are some of the factors insurers take into consideration when evaluating your risk level:

Age: Younger people usually pay less for coverage.

Gender: Women typically live longer than men, so women almost always pay less than men of the same age and health.

Health History: Cholesterol, BMI, blood pressure, as well as any preexisting conditions are some of the factors underwriters use to determine your risk level.

Family Medical History: Any family history of early deaths or serious health conditions like cancer, heart disease or diabetes may be factored in your rating.
Criminal History
Alcohol and Drug Use

Smoking Habits: Life insurance for smokers is typically more expensive.

High Risk Hobbies: Participating in risky activities like skydiving or flying airplanes can increase your risk level and premium.

Occupation: If you work in a high risk job or hazardous workplace, you’ll be considered riskier.

Driving Record: DUIs, DWIs, and major traffic violations will also be factored in.

Financials: Some insurers will want to know you can afford to pay the premiums, and may even run a credit report.

Citizenship Status: Some life insurance companies won’t issue policies to Non-US citizens or temporary visa holders.

Prescription Medication Record: Many companies will pull up your prescription record for the past 7 years to ensure you don’t have any medical conditions that have not been disclosed on the application.

A life insurance underwriter will analyze all these factors and then calculate your life expectancy. Based on this information you will then be assigned a life insurance rating class.
The higher you life expectancy, or rather, the lower the probability that you will die while the policy is active, the lower your premium will be.