Insurability

Insurability is the quality assigned by an insurance provider pertaining to the risk that a given client would have. An individual with very low insurability may be said to be uninsurable.

For example, an individual with a terminal illness and a life expetency of 6 months would be uninsurable for term life insurance. This is because the probability is so high for the individual to die within the term of the insurance, that he/she would present much too high a liability for the insurance company. A similar, and stereotypical, example, would be earthquake insurance in California.