Term Life Insurance Articles
The Role Of Evidence Of Insurability In A Life Insurance Agreement
2011-08-12
Many life insurance companies request Evidence of Insurability documentation before approving a life insurance agreement. Evidence of Insurability is often a special form (sometimes called an EOI form) which is submitted with an application. It has a direct affect on a buyer's insurance coverage and may be important for ensuring protection for both the insurance provider and the policy holder.
In a typical life insurance agreement, Evidence of Insurability is required before coverage becomes active. The exact requirements for EOI vary from one insurance company to the next, but generally they'll be checking that policy holder's stated health history is in line with his or her actual health. An insurance company may ask to see medical records for the last several years, especially records that relate to preexisting conditions. Some life insurance companies may ask their policy holders to get new examinations to check for conditions which could limit insurability. A physician may need to complete separate examination paperwork to prove that a policy holder has an acceptable insurance risk. Once Evidence of Insurability has been submitted to a life insurance company, it will be evaluated. This process can take anywhere from a few days to a few months.
If an Evidence of Insurability application is denied, an applicant can usually appeal. However, life insurance companies don't have the same state and federal regulations as health insurers or other types of providers, and they usually have the right to deny coverage due to a policy holder's health and due to preexisting conditions. A policy may be denied due to the policy holder's health, age, occupation or a combination of these factors. Policies cannot be denied due to race, ethnicity or other discriminatory criteria.
Some life insurance companies depend completely on applications and don't require Evidence of Insurability documents from their policy holders. These life insurance companies often advertise "no exam" policies, but buyers should note that a lack of an examination or medical records doesn't mean automatic approval for coverage. "No exam" life insurance policies depend on applications for accurate information, and if a buyer has preexisting conditions which indicate a high chance of a life insurance claim, he or she may still be denied coverage. Premiums can also be higher for no examination life insurance policies. Before buying life insurance, it's important to find out about Evidence of Insurability requirements and how they affect a policy's potential costs and coverage. EOI documents can certainly have a major effect, but buyers who understand them should be able to submit the correct documentation without a hassle or an increase in rates.
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Many life insurance companies request Evidence of Insurability documentation before approving a life insurance agreement. Evidence of Insurability is often a special form (sometimes called an EOI form) which is submitted with an application. It has a direct affect on a buyer's insurance coverage and may be important for ensuring protection for both the insurance provider and the policy holder.
In a typical life insurance agreement, Evidence of Insurability is required before coverage becomes active. The exact requirements for EOI vary from one insurance company to the next, but generally they'll be checking that policy holder's stated health history is in line with his or her actual health. An insurance company may ask to see medical records for the last several years, especially records that relate to preexisting conditions. Some life insurance companies may ask their policy holders to get new examinations to check for conditions which could limit insurability. A physician may need to complete separate examination paperwork to prove that a policy holder has an acceptable insurance risk. Once Evidence of Insurability has been submitted to a life insurance company, it will be evaluated. This process can take anywhere from a few days to a few months.
If an Evidence of Insurability application is denied, an applicant can usually appeal. However, life insurance companies don't have the same state and federal regulations as health insurers or other types of providers, and they usually have the right to deny coverage due to a policy holder's health and due to preexisting conditions. A policy may be denied due to the policy holder's health, age, occupation or a combination of these factors. Policies cannot be denied due to race, ethnicity or other discriminatory criteria.
Some life insurance companies depend completely on applications and don't require Evidence of Insurability documents from their policy holders. These life insurance companies often advertise "no exam" policies, but buyers should note that a lack of an examination or medical records doesn't mean automatic approval for coverage. "No exam" life insurance policies depend on applications for accurate information, and if a buyer has preexisting conditions which indicate a high chance of a life insurance claim, he or she may still be denied coverage. Premiums can also be higher for no examination life insurance policies. Before buying life insurance, it's important to find out about Evidence of Insurability requirements and how they affect a policy's potential costs and coverage. EOI documents can certainly have a major effect, but buyers who understand them should be able to submit the correct documentation without a hassle or an increase in rates.
