Underwriting is the process by which the insurance company reviews you as a risk to be insured, and determines if they want to insure for life insurance.
The insurance underwriter reviews all pertinent information regarding your application for coverage, including your health history, driving record, age, tobacco use, lifestyle, etc. to determine how healthy you are and your expected longevity - how long you are expected to live.
The underwriter uses this information to determine if they will insure you, and for how much coverage.
In addition, the underwriting of your application for life insurance will aid the underwriter in deciding what rate per $1,000 of life insurance to charge you for your insurance policy.
Whereas, a simplified issue life insurance policy offers same-day coverage based on your answers to the questions asked on the application, as well as, any health information available on you, through the Medical Information Bureau.
Learn more about underwriting for life insurance policies.