What is commonly required from a borrower for obtaining insurance over a certain amount?

When a borrower seeks to obtain insurance coverage over a certain amount, particularly in the case of life insurance, a signed statement of good health is commonly required. This document serves as a declaration by the individual regarding their current health status and any existing medical conditions. It helps the insurance company assess the risk associated with insuring the individual, as health factors can significantly influence the probability of a claim being made.

The requirement for a signed statement of good health is primarily to ensure that the insurance provider has accurate and complete information to make underwriting decisions. This measure protects both the insurer and the insured by promoting transparency in the application process, thereby allowing the insurer to accurately price the policy based on the risk presented by the borrower’s health. Matters related to health history or any current health issues are paramount for understanding potential future claims.

While other documents like a credit report, financial statement, or family health history may also play roles in the overall underwriting process, they typically do not replace the need for a direct assessment of the applicant's current health status as conveyed through a signed statement of good health.