We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is a Life Insurance Underwriter?

By Linda Hinkle
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

When a person decides to buy life insurance, he fills out an application and submits it to a life insurance company. A life insurance underwriter is a person at the insurance company who reviews the application and determines whether the company should provide coverage for the applicant. If the applicant is found to be an acceptable risk, the life insurance underwriter also determines how much the applicant must pay for the coverage and specifies the exact terms of the policy.

A life insurance policy provides protection against financial loss caused by death. It is a contract between the owner of the policy and the insurance company. The owner agrees to make regular payments, called premiums, to the insurance company, and the insurance company promises to pay a sum of money to the owner’s designated beneficiary upon the owner’s death.

The insurance company cannot stay in business if it consistently pays out more than it brings in through premiums. On the other hand, if the premiums are too high, the company may lose business to competitors. It is the life insurance underwriter’s job to collect and study data about each applicant, determine the potential risk of providing coverage, and set appropriate rates so that the company makes a profit.

A life insurance underwriter collects and analyzes various pieces of information to help determine an applicant’s level of risk. Along with the information on the policy application, an underwriter studies medical reports, information about the applicant’s job, and details about participation in dangerous sports or hobbies. Life insurance underwriters also consult actuarial tables, which show statistics about actual losses of certain groups of people over an extended period of time. Underwriters study the applicant’s credit report and financial statement to make sure the applicant is financially able to pay the insurance premiums.

Instead of writing individual policies, a life insurance underwriter can choose to specialize in writing group policies. A group policy is one standard contract that insures all members of a specified group under the same terms and at the same premium. Group underwriters study and analyze data for the group as a whole, rather than on an individual basis, to determine the conditions of the policy and amount of the premiums.

The work of a life insurance underwriter is complex and demanding, and requires strong analytical skills, attention to detail, and responsible judgment. Underwriters rely heavily on the use of computers and technology in their work, making strong computer skills essential. Effective communication and good interpersonal skills are also necessary, because an underwriter’s work frequently involves dealing with agents, policyholders, applicants, and other professionals.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

By anon142287 — On Jan 12, 2011

how can i start a life insurance policy with my employer through a certain company and my employer take it upon themselves to cancel it and start another policy with some other agency without my knowledge or signature? not even a courtesy call or letter stating that they changed insurance carriers. then when i call the the new policyholders, they tell me that they are only underwriters and they don't have any info about my policy and that i would have to get it from my employer.

In turn, my employer refused to give me any written info about the policy but the deductions are steadily coming from my paycheck.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.