When would evidence of insurability be required for a person already covered with a variable universal life policy?
The death benefit is increased
A life policy is called a life assurance.
Life assurance policy is one type of insurance enforced on a life assured life. A life policy can either have benefit to pay on death to the beneficiary or serves as an investment for the life assured.
A variable universal life policy is a permanent life policy with savings features, investment features and death benefit features. This policy is unique because its pays death benefit and also serves as investment of cash which can be redeemed by the life assured as will.
Evidence of insurability means the proof of existing insurance policy, certificate of insurance, policy document and new medical examination of the life assured.
Keynote to understand
1. Premium determination depends on the benefit.
2. Variable universal life policy is a permanent life policy.
3. When the death benefit is increased at the will of the assured/life assured or because the determining factor of the benefit changes, that will consequentially affect the new premium payable. Thus, the evidence of insurability will be requested for.
Therefore, the evidence of insurability will be required for a person already covered with a variable universal life policy when the death benefit is increased.
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