When is evidence of insurability required for a person covered by a variable universal life policy?

Evidence of insurability is required for a person covered by a variable universal life policy when the death benefit is increased. This requirement is in place because any increase in the level of coverage represents a higher risk for the insurer. The underwriter needs to assess the individual's current health status and any potential changes in risk factors that may have occurred since the original policy was issued. This assessment helps the insurer determine whether they are willing to accept the increased risk associated with the higher death benefit.

For instance, if a policyholder decides to boost the death benefit, the insurer needs to evaluate the person's insurability to ensure they are not taking on more risk than they might have agreed to when they first issued the policy. This is a standard practice in life insurance to maintain a balance between risk and coverage.

Other situations such as renewing the policy, changing beneficiaries, or stopping premium payments do not typically trigger a requirement for evidence of insurability. Renewals often involve the continuation of existing coverage under the same terms, beneficiary changes do not affect the underwriting process, and stopping premium payments can lead to policy lapse rather than a reassessment of insurability. Therefore, the scenario regarding an increase in the death benefit aligns directly with underwriting standards and practices in variable universal