Financial underwriting evaluates whether the size and purpose of coverage are appropriate and affordable. Underwriters review income, assets, liabilities, tax returns, and business financials to confirm insurable interest and prevent speculation. Strong financial underwriting aligns death benefit with economic loss exposure, ensuring suitability and protecting carrier risk pools.

Advisors collaborate with underwriters to align coverage with income, assets, and liabilities. They document business purpose on key-person and buy-sell cases and ensure coverage is proportional. Strong financial underwriting prevents over-insurance and declines.