South Carolina Life and Health Practice Exam

All of the following are key factors in underwriting life insurance EXCEPT?

1. Age

2. Health status

3. Marital status

4. Occupation

The correct answer is: Marital status

In the underwriting process for life insurance, several key factors are examined to assess the risk associated with insuring an individual. Among these factors, age, health status, and occupation are critical as they directly relate to the policyholder's life expectancy and overall health risks. Age is significant because it directly affects the mortality rates and the probability of the insured living long enough for the insurance company to pay out a claim. Health status is paramount since pre-existing conditions or overall health can indicate the risk of early claim payouts. Similarly, occupation plays an essential role since certain jobs may carry higher risks of accidents or health issues, influencing the likelihood of a claim being made. Marital status, while it can provide some context about lifestyle and potential financial dependencies, does not carry the same weight in evaluating risk as the other factors. It is not a direct indicator of health or mortality risk, which are the primary concerns of life insurance underwriting. Therefore, this makes marital status less relevant and is why it is the correct answer for the factor that is not key in underwriting life insurance.