What is evidence of insurability?

Evidence of insurability, commonly known as EOI, refers to the process by which an insurance company assesses an individual's risk factors and determines their eligibility for coverage. This process typically involves individuals completing a detailed health questionnaire and often also includes a medical examination, blood work, and sometimes other tests depending on the type of insurance being applied for.

The purpose of evidence of insurability is to allow the insurance company to accurately assess the risk of insuring an individual and to determine the appropriate premiums for coverage. Factors such as an individual's age, health history, lifestyle choices, occupation, and family medical history are all taken into consideration during the evaluation process.

Evidence of insurability is typically required when someone is applying for new insurance coverage, increasing their coverage amount, or when they are adding dependents to their policy. It helps to ensure that the insurance company is making fair and informed decisions about the level of risk they are taking on by providing coverage to an individual.

Ultimately, evidence of insurability helps insurance companies maintain a balanced risk pool, which allows them to continue providing coverage to individuals while also managing their financial obligations.