What is the purpose of a medical examination in life insurance underwriting?

The purpose of a medical examination in life insurance underwriting is to assess the applicant's health status to determine the associated risk and inform premium calculations. Underwriters use the information obtained from the medical exam, which may include physical tests, health history, and vital sign measurements, to evaluate the likelihood of the applicant making a claim due to health-related issues. This evaluation helps the insurance company decide not only whether to approve the application but also how much to charge in premiums based on the risk level. A healthier applicant may qualify for lower premiums, while those with medical issues may face higher rates or even denial of coverage.

Other options do not align with the primary function of the medical examination. Verifying the beneficiary's identity pertains to ensuring that the rightful person receives the benefit and is not related to assessing the applicant's health. Completing policy paperwork is part of the administrative process rather than an evaluation of risk. Determining the insurance company's marketing strategy involves strategic planning and market analysis, which is separate from the individual underwriting process.