What is the impact of pre-existing conditions on life insurance underwriting?

The impact of pre-existing conditions on life insurance underwriting is significant, as they can lead to higher premiums or exclusions. Underwriters assess the risk associated with an applicant's medical history and current health status. If an applicant has a pre-existing condition, the insurer may view them as a higher risk due to potential future claims related to that condition. Consequently, the insurer may charge higher premiums to mitigate the financial risk involved or may impose exclusions that limit coverage for that specific health issue. This careful consideration helps insurers manage the risk while providing coverage that suits the applicant’s circumstances. The underwriting process aims to balance the applicant's needs with the insurer's financial sustainability.