In which situation might a Statement of Continued Good Health be necessary for a life insurance policy?

A Statement of Continued Good Health is typically necessary when an application for a life insurance policy is submitted without a premium. This statement serves as a confirmation from the applicant that their health status has not changed since the time of application. Insurers use this statement to ensure that no significant changes in health have occurred that could affect the underwriting decision or the risk assessment process.

When an application is submitted without the initial premium, the insurer may not have the same assurance that the applicant is still a suitable risk by the time the policy is issued. Hence, requiring a Statement of Continued Good Health helps protect the insurance company by verifying that the applicant remains insurable under the same terms.

Including a premium with the application typically implies that a commitment has been made upfront, and the insurer can process the application without needing an additional health affirmation. Age-related considerations, while important, do not directly necessitate a Statement of Continued Good Health in this context.