Evidence of Insurability

What Do You Mean by Evidence of Insurability?  

EOI, also known as Evidence of Insurability, refers to documented proof of good health, which is essential to getting insurance. This specific documentation is necessary for insurance providers to approve various types of insurance for their clients. In other words, this document usually verifies a client’s overall health, which is then used to grant access to insurance. 

Sometimes the results of EOI can also influence the amount and duration of insurance. 

When Do You Need the Evidence of Insurability? 

In usual cases, you’ll need an EOI for things related to health coverage, like additional policy coverage, excess coverage, and so on. Besides, disability and accident-related insurances also need evidence of insurability in most cases. 

Furthermore, EOI can be an important factor if a client is trying to re-apply for certain insurance coverage which was once declined. If an existing beneficiary wants to add another person or dependent under the current policy, they’ll also need an EOI for approval. 

Lastly, clients might not avail of the amount mentioned in the guaranteed issue for certain life insurance policies without a verified EOI. Every company has a guaranteed issue set at a minimum of $25,000 which can only be granted with a valid EOI. 

What is the Main Purpose of Evidence of Insurability?

EOI provides data regarding an individual's health condition, which is evaluated to calculate the risk factor of granting insurance. 

In simple terms, the insurers will analyze the risks of approving an insurance coverage based on the report of the evidence of insurability document. 

In many cases, providing existing clients with additional coverage can be a risky investment for the insurers. In these scenarios, EOI can help them take a calculated risk on the basis of good health and company policies. 

Besides, insurance company executives give a final verdict on the added revenue vs. added liability issue based on the information of EOI. 

How Can You Get Evidence of Insurability?

The process of getting an EOI can vary from one company to another, but most of them follow a similar pattern. To get an EOI, an insurance applicant must complete a series of questionnaires regarding their health. 

The insurers may ask about medical history, drinking or smoking habits, recent diseases, etc. If you provide false information, the insurers will have the full authority to sue you for insurance fraud. So make sure the information you provide is correct. 

After filling up the questionnaire, your answers will be evaluated by the executives, and they will decide whether your answers meet their criteria. They will also let you know if you need to give them additional information for proper evaluation. 

If you fail to provide the required information, your application for insurance coverage might be canceled due to limited information. 

After thoroughly reviewing your application, the insurance company will let you know if you’re application for EOI is approved or denied.