The following is my answer to a Quora
question: “Do
you need a back ground check before applying for life insurance?”
A background check is not required for
applying for life insurance. However,
the insurer may require further documentation during the underwriting process
to clarify risk and compliance concerns.
For example, if you are a politically exposed person (PEP), a lot of
documentation is required to establish the source of our wealth and how you
acquired it. Or, if the company
suspects, in the course of the know your client (KYC) and fact find, that you
may be susceptible to certain risk, they may require further medical reports or
other documentation. Another concern
would be if the budget is not commensurate with your earnings. Or, if there is a discrepancy between your
earnings and the size of the policy. All
these things may require further clarification with documentary evidence. However, in no way would any of this be
considered a background check, which is much more comprehensive.
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