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the second important clause found in every life insurance policy. As its name implies, the consideration clause deals largely. with the consideration paid by the policyowner for life insurance protection-. -the premium. identifies the fact that the policyowner must pay something of value. for the insurer's promise to pay benefits. This valuable consideration is the. premium.
But underwriting is one of the most important parts of the insurance process. And knowing what an underwriter does â and why itâs so important â is helpful for people who are shopping for a new policy.or example, if you drive a car, you have a risk that your car will be damaged in an accident. Having auto insurance means that if the car does get damaged, the insurance company will pay for the repairs. By having a policy, your risk is lower.