Why might an insurer require a medical exam during the underwriting process?

An insurer may require a medical exam during the underwriting process primarily to assess the applicant's health and related risks. This evaluation helps the insurer determine the level of risk associated with providing life insurance to the applicant. The medical exam can reveal important health information, such as existing medical conditions, lifestyle choices (like smoking or exercise habits), and family medical history, all of which can significantly impact the likelihood of future claims and the potential cost of coverage.

By accurately assessing the health status of the applicant, the insurer can make informed decisions about coverage options, premium rates, and policy terms. This process ensures that the insurer maintains its overall risk management strategies, providing fair rates for all policyholders based on their individual health profiles.