Without Evidence of Insurability

DEFINITION of 'Without Evidence of Insurability'

The ability to acquire a policy, such as life or health insurance, without being required to submit to a physical examination. Group plans, including employer-sponsored plans, often insure without evidence of insurability when employees apply for the plan within a certain number of days of being hired or becoming eligible to participate in the group plan. Also, certain coverage may be acquired without evidence of insurability if the coverage amounts are equal to or lesser than a certain, specified amount.

BREAKING DOWN 'Without Evidence of Insurability'

In general, an insurance policy without evidence of insurability is a higher risk for the insurer. This added risk is from the lack of information on the policyholder. To limit the risk of the insurer, the insurer usually places a cap or limited on the amount the policyholder can receive if needed.