How do actuaries assess the risk for applicants with disabilities?

Actuaries assess the risk for applicants with disabilities by evaluating how the specific disability impacts the likelihood of loss. This involves analyzing various factors, such as the nature and severity of the disability, the applicant's overall health condition, and how it may influence their life expectancy and quality of life. By understanding these dynamics, actuaries can more accurately determine appropriate rates and coverage options for individuals with disabilities, ensuring that the insurance product remains viable for both the insurer and the insured.

This approach allows for a nuanced understanding of risk rather than applying a one-size-fits-all methodology, which would be insufficient given the diverse range of disabilities and their effects on an individual's risk profile. It also ensures that applicants are treated fairly, as their unique circumstances are taken into account rather than being subjected to automatic increases in premiums or standardized ratings.