What is one of the major risks assessed when underwriting life insurance?

The life expectancy of the insured is a critical factor in the underwriting process for life insurance because it directly influences the insurer's assessment of risk and potential payout. Underwriters analyze various data points, such as age, health history, lifestyle choices, and any medical conditions, to estimate the likely longevity of the individual applying for coverage. A shorter life expectancy indicates a higher risk for the insurer, which could lead to higher premiums or even denial of coverage. This assessment helps the insurer to determine whether to accept the application and under what terms, ensuring that they can appropriately manage their risk exposure associated with providing life insurance.

The other options do not focus primarily on the underwriting assessment of mortality risk. For example, while previous insurance claims may indicate a history of risk-taking behavior, they are not as directly tied to the likelihood of death as life expectancy. Similarly, current financial investments and high income potential might influence the insured's overall financial situation and needs for life insurance, but they do not provide a clear measure of risk concerning lifespan.