Quora Answer: Is a Background Check Required to Apply for Life Insurance?

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.