What does "fully underwritten" mean in life insurance?

"Fully underwritten" in the context of life insurance refers to a process where the insurance company conducts a comprehensive evaluation of an applicant's health and medical history before issuing a policy. This typically involves gathering detailed medical information, which may include a physical examination, lab tests, and reviewing medical records. The goal of full underwriting is to assess the risk associated with insuring the individual accurately. By obtaining extensive health details, insurers can determine whether to accept the application and what premium rates are appropriate based on the individual's risk profile. This thorough assessment is essential for pricing policies accurately and ensuring that the life insurance program is financially viable for the insurer.