In terms of insurance underwriting, what aspect is most relevant to the affordability of a policy for the applicant?

The affordability of an insurance policy for an applicant is primarily determined by the premium, which is the amount the policyholder must pay to maintain coverage. The premium reflects the cost of the insurance, and it plays a crucial role in whether an applicant can comfortably include that expense in their budget.

When an applicant evaluates their potential insurance options, they will often assess how much they can afford to pay on a monthly or annual basis for the premium. If the premium is too high compared to their financial situation, they may choose to forgo purchasing the policy altogether or opt for lower coverage.

While aspects like the applicant's credit history, the sum insured amount, and the duration of the policy do factor into the overall underwriting process, they do not directly influence the immediate out-of-pocket expense for the policyholder as much as the premium does. For instance, a higher sum insured might increase the premium, and while a longer duration might offer lower premiums per month, it is still the premium amount that a consumer focuses on when determining affordability.