Chartered Life Underwriter Exam 2025 – 400 Free Practice Questions to Pass the Exam

When a life insurance application is submitted and the initial premium is not collected at that time, it is essential for the policy to be accompanied by a Good Health Statement upon delivery. This statement serves as a declaration from the insured regarding their current health status. It is crucial because the insurer wants to confirm that no significant changes have occurred in the applicant's health since the application was submitted, which could affect the underwriting of the policy.

The Good Health Statement provides the insurer with assurance that the risk profile of the insured has not changed adversely. If the applicant's health has deteriorated, this might impact the terms of the policy or even the decision to issue it at all. Therefore, this statement is a vital component that helps protect the insurer's interests while also ensuring that the insured is aware of their responsibilities regarding the health disclosures made during the application process.