What is the purpose of a medical exam during underwriting?

The purpose of a medical exam during underwriting is primarily to obtain comprehensive health information that may not be disclosed on the application. This health assessment is essential for insurers to make informed decisions about the risk associated with providing coverage. A medical exam generally includes a physical examination and may involve blood and urine tests, which can reveal crucial data about an applicant's health conditions, lifestyle factors, and any underlying risks that may not be apparent through self-reported information. This thorough evaluation allows underwriters to set appropriate premiums and coverage limits based on the individual's actual health status, leading to more accurate risk assessment for both the insurer and the insured.

In contrast, assessing financial status is typically done through a different process that looks at income and credit history, while lifestyle habits may be considered through questionnaires but do not require the same level of detailed examination provided by a medical exam. Lastly, verifying the beneficiary's identity is relevant to the policy itself but is not a purpose of the medical exam, as it focuses primarily on the applicant's health profile.