Chartered Life Underwriter Exam 2025 – 400 Free Practice Questions to Pass the Exam

An applicant's health history primarily helps the underwriter assess life expectancy and risk level. Understanding the health history gives the underwriter valuable insights into the applicant's current health status, past medical conditions, family health trends, and lifestyle choices that might impact future health.

This information is crucial because it enables the underwriter to evaluate how likely it is that the applicant will need to claim on the insurance policy in the future. An individual with a significant history of health issues may be assessed as having a higher risk of mortality. Consequently, this can influence both the underwriting decision and the premium rates offered.

Other aspects, such as net worth or employment history, may provide context but do not directly indicate how an applicant's health relates to their insurance risk. General lifestyle preferences may be considered in a broader sense but are secondary to the immediate implications of health status on the life insurance underwriting process. Thus, the primary objective of assessing health history is accurately predicting life expectancy and determining the associated risk level for insurance coverage.