Importance of a financial statement in Life assurance

0
343

It is important to know the financial state of the Proposer in order to ensure that the cover granted is reasonable compared to his financial circumstances. It also helps to establish that insurable interest exist for the proposed policy.

The objective is to minimize the following risks.

  • Fraudulent claims
  • Anti-selection
  • Early lapse and surrenders

LEAVE A REPLY

Please enter your comment!
Please enter your name here