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.

Investopedia explains '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.



comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an 80% loan-to-value ratio, the second position lien has a 10% loan-to-value ratio and the borrower makes a 10% down payment. 80-10-10 mortgage transactions are piggy-back mortgage transactions, and are frequently used by borrowers to avoid paying private mortgage insurance.
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific benchmark, such as a SPDR. Unlike actively managed ETFs, passive ETFs are not managed by a fund manager on a daily basis.
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out. So when examining a specific market, if all other markets are in equilibrium, Walras' Law asserts that the examined market is also in equilibrium.
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
Trading Center