If an underwriter determines that an applicant's risk should be increased due to a health issue, what might be added to the policy?

When an underwriter identifies an applicant's risk as being greater due to health issues, the most common adjustment made to the insurance policy is the addition of an extra premium. This means that the policyholder will pay more than the standard premium rate in order to account for the heightened risk associated with their health condition.

The rationale behind this adjustment is that insurers need to mitigate the financial risk posed by covering individuals who have a higher likelihood of making a claim. By adding an extra premium, the insurer can ensure that the policy remains financially viable while still providing coverage to the applicant.

Other options, such as a waiver of premium, which typically allows a policyholder to skip payments under certain conditions without risking policy termination, or a reduced death benefit, which decreases the amount payable upon death, do not directly address the increased risk from health issues. A loading charge, often associated with adding costs to the premium or policy provisions, could also be seen in certain contexts, but in the specific scenario of reflecting an increase in risk due to health factors, the extra premium is the most straightforward and widely implemented solution.