What Is Evidence of Insurability in Life Insurance?
<lingo>The term evidence of insurability, or EOI, is one used in many life insurance policies. In short, it defines that a person is capable of receiving the life insurance coverage because he or she is in relatively good health or has met other requirements set by the underwriters of the policy. Some types of life insurance policies do not allow everyone to purchase them. Instead, the individual’s health must be assessed to ensure he or she is healthy enough for coverage to be a manageable amount of risk for the insurance company. This, then, is evidence of insurability.</lingo>
Evidence of Insurability Clearly and Briefly Explained
Some forms of life insurance require a comprehensive medical exam. This includes whole life insurance, or permanent life insurance, variable life insurance, and some forms of term life insurance that have a larger death benefit associated with them. The insurance company requires a look at a person’s medical records and may even require that an attending doctor provide a statement of health. Most life insurance policies will also include using information from an exam to determine if a person has any high risks that could reduce their lifespan for any reason.
<twitter>The term evidence of insurability, or EOI, is one used in many life insurance policies. In short, it defines that a person is capable of receiving the life insurance coverage because he or she is in relatively good health or has met other requirements set by the underwriters of the policy.</twitter>
If a person wishes to obtain these forms of life insurance, they will need to work through these requirements. If the exam seems to show no key risk factors that their health is bad, then the underwriters will issue a statement of evidence of insurability. Simply, it means they have done their research and determined that you are insurable and therefore, can buy the life insurance policy.
In some situations, EOI can also refer to other requirements the life insurance company sets forth. For example, if a person is obtaining a basic term life insurance policy from their employer, there may be requirements for achieving this. For example, the employee may have to work for the company for two years before they are allowed to obtain this benefit. In all cases, then, this term applies to situations where the person has met the requirements through examination or research and can purchase the life insurance policy.
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