Certified Financial Consultant (CFC) Practice Exam

What is typically required for a medical application for life insurance?

1. A self-reported health questionnaire

2. A full medical exam

3. No medical questions at all

4. Only a signed waiver

The correct answer is: A self-reported health questionnaire

In the context of applying for life insurance, a self-reported health questionnaire is commonly required. This type of questionnaire allows applicants to provide information about their medical history, lifestyle choices, and any current health conditions. Insurers use this information to assess the risk associated with insuring the individual and to determine appropriate coverage and premium rates. A self-reported health questionnaire is advantageous for both the applicant and the insurer, as it streamlines the application process and allows for initial risk assessment without the immediate need for an in-depth medical exam. It also helps to identify any potential red flags that may necessitate further investigation, such as requiring a full medical exam or additional health records. While other options may seem plausible, such as a full medical exam or the absence of medical questions, these are not standard for all life insurance applications. Many policy types, especially term life or certain simplified issue policies, rely primarily on the questionnaire and may not necessitate an extensive medical evaluation. Therefore, the self-reported health questionnaire serves as a foundational component in the underwriting process for life insurance.