What is the main function of underwriting in the life insurance process?

The main function of underwriting in the life insurance process is to determine eligibility and assess risk for coverage. Underwriting is essential because it involves evaluating the applicant's health, lifestyle, and other relevant factors to decide whether the insurance company should offer a policy and at what premium rate. This process helps to ensure that the insurer can cover potential claims while maintaining financial stability.

By accurately assessing the risks associated with insuring an applicant, underwriters help protect the insurance company from adverse selection, where individuals who are more likely to claim coverage are more inclined to seek insurance. This assessment includes reviewing medical histories, conducting interviews, and sometimes requesting medical examinations to gather comprehensive information about the applicant's risk profile.

The other options, while important aspects of the insurance process, do not relate directly to underwriting. Preparing marketing materials focuses on promoting the insurance products, managing claims pertains to processing benefits after an insured event occurs, and handling customer inquiries involves providing support and information to policyholders and potential customers. All of these activities are crucial, but they operate outside the core function of underwriting, which is primarily centered around risk assessment and eligibility determination.