Why Would I Need to Fill Out an Evidence of Insurability for Life Insurance?
When applying for life insurance, the insurer will require the insured to provide evidence of insurability. This process is one of the early steps in an insurance company's decision to extend or deny life insurance.
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Evidence of Insurability
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Evidence of Insurability (EOI) is the documentation of the insured's medical condition. This may consist of a simple health questionnaire, but the answers submitted could lead to inquiries into the insured's medical records and/or medical exam.
Considerations
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Evidence of Insurability documents are reviewed by policy underwriters. They can accept or deny the EOI application. If the applicant is approved but has less than standard health, they can issue a rating which can lead to higher premiums to offset the risk.
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Other Instances
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If a policy owner decides to increase the coverage amount of their life insurance plan, he/she will be required to provide evidence of insurability.
Misconceptions
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The insured can avoid providing Evidence of Insurability when renewing their term life plan or converting it into a permanent life policy. This can happen if the benefit amount remains unchanged, the policy has a renewal/conversion clause and it occurs during the specified time period.
Warning
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If the applicant does not comply with the Evidence of Insurability requirement set by the insurer, then coverage will be denied.
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