Definition

The regular payment you make to keep your insurance policy active. Paying on time keeps your coverage in force and protects you from unexpected costs.

What to consider

  • Provide accurate and complete information.
  • Understand that underwriting affects your premium.
  • Be prepared for potential additional requirements.

Real world scenarios

  • Before receiving a new policy, Mark underwent an underwriting process to assess his risk level.
  • Linda’s application was reviewed during underwriting to determine her premium rate.
  • An insurer’s underwriting process evaluated John’s medical history before approving his coverage.

Related terms

Insurance & Financial Protection