Which kind of insurance typically requires evidence of insurability?

Permanent life insurance typically requires evidence of insurability because it provides lifelong coverage and often includes a cash value component. Underwriters assess the applicant's health status, lifestyle, and other factors to determine the level of risk associated with providing coverage for an extended period. Since these policies involve a commitment from the insurer to pay out a death benefit many years into the future, demonstrating the applicant’s insurability is crucial to ensure that the premiums adequately reflect their individual risk profile.

In contrast, group health insurance often doesn’t require such evidence as it is based on a collective risk pool, where individuals are covered without medical underwriting to simplify access. Term life insurance may have some instances where evidence of insurability is required if the applicant exceeds certain amounts or for conversion mechanisms; however, it is less common than with permanent policies. Fixed indexed annuities also generally do not require evidence of insurability as they are investment products rather than insurance policies meant to cover mortality risk.