What does insurability refer to?

Insurability refers to an individual's risk profile and health conditions, as it determines whether an individual is eligible for insurance coverage and at what premium rate. Underwriters evaluate insurability by examining various factors, such as medical history, current health status, lifestyle choices, and other relevant information. This assessment helps insurance companies decide the likelihood of a claim being made and the potential costs associated with providing coverage.

The concept is essential because it directly impacts the pricing and availability of insurance policies. A person with a higher risk profile, due to pre-existing health conditions or risky behaviors, may face higher premiums or even denial of coverage, while those with better health may receive more favorable terms. Understanding insurability helps individuals navigate the insurance process and prepares them for how their health status may affect their options.