Question

How long can the life insurance offer be postponed for individuals with initial high-risk period?

a.

Between 2-5 years

b.

Between 1-3 years

c.

Between 6 months to 2 years

d.

Indefinitely

Posted under IC22 Life Insurance Underwriting

Answer: (c).Between 6 months to 2 years Explanation:When the initial risk associated with an individual is unacceptable at the time of underwriting, but is expected to improve over a period of time, the life insurance offer can be postponed for a certain period, typically between 6 months to 2 years depending on the medical condition. After the initial high-risk period has elapsed, the applicant would be evaluated and assessed afresh at that point of time. This allows the insurance company to deal with reduced risk after the period of high risk has elapsed, and it's a win-win situation for both the individual and the insurance company.

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Q. How long can the life insurance offer be postponed for individuals with initial high-risk period?
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