Minnesota Life Insurance License Practice Exam

What must be included in a life insurance application?

1. Beneficiary's personal information

2. The insured's financial history

3. Medical examination results

4. The insured's age and health history

The correct answer is: The insured's age and health history

In a life insurance application, it is essential to include the insured's age and health history because this information is critical for the insurer to assess the risk associated with providing coverage. The insured's age helps determine life expectancy, which influences premium rates and coverage amounts. Similarly, the insured's health history provides important insights into potential medical conditions or risks that may affect both eligibility for coverage and the pricing of the policy. Comprehensive knowledge of these factors allows insurers to appropriately evaluate and manage their risk, leading to more informed underwriting decisions. While other information, such as the beneficiary's personal details, financial history, and medical examination results, can be relevant and may be included in various applications, they are not universally required in all applications. The primary focus in determining the risk profile for life insurance remains firmly on the insured's age and health history.