How is overall risk assessed in life insurance underwriting?

Overall risk in life insurance underwriting is primarily assessed through a comprehensive approach that incorporates multiple factors related to the applicant's health, lifestyle, and background. This includes the use of medical exams, which provide objective health information about the applicant, along with mortality tables that help underwriters to calculate the likelihood of death within certain age groups based on statistical data. By evaluating these elements, underwriters can gain a clearer picture of the risks involved, allowing them to make informed decisions about the policy terms, coverage amounts, and premiums.

The other options represent narrow approaches that do not allow for an accurate risk assessment. For instance, focusing solely on the applicant's age and gender overlooks significant health and lifestyle factors that could affect life expectancy. Asking only auto-related health questions disregards broader health concerns that could influence the applicant's risk profile. Similarly, reviewing financial history without gathering medical details misses critical health information that is vital for evaluating mortality risk. Overall, the correct method for assessing risk integrates various tools and sources to arrive at an informed underwriting decision.