Why is a medical examination typically required during life insurance underwriting?

The requirement for a medical examination during life insurance underwriting is primarily to assess the health status and risks of the applicant. Insurance underwriters rely on this examination to evaluate the potential risk an applicant poses based on their medical history, current health conditions, lifestyle choices, and other relevant factors. This assessment is critical because it directly influences the insurer's decision regarding coverage approval, premium rates, and overall underwriting guidelines.

By conducting a medical examination, the insurer gathers objective, detailed information that helps predict the life expectancy and potential longevity of the applicant. It enables the underwriting process to be more accurate, ensuring that the insurance company can properly price the policy to balance potential payouts against the premiums collected. Thus, the applicant's health status is a key determinant in the underwriting process, leading to informed decisions regarding insurance coverage.