Before a life insurance policy is issued, which component of the contract is required?

The applicant's signature on the application is a crucial component required before a life insurance policy can be issued. This signature serves several important purposes within the context of the insurance application process.

First, the applicant's signature signifies that they have provided accurate and truthful information to the insurer in the application. This is vital as it ensures that the insurer can properly assess the risk associated with issuing the policy. Misrepresentation or omission of information could lead to issues later, including claims being denied.

Second, the signed application acts as a part of the insurance contract itself. It binds both the applicant and the insurer to the terms outlined in that application, reinforcing the contract's validity once the policy is issued. Without the applicant's signature, the insurer has insufficient authorization to move forward with underwriting or policy issuance.

While medical exam results and underwriter assessments are important in evaluating the risk and determining premium rates, they do not replace the necessity of the applicant's signature. Agent approval is also not a required condition for the issuance of the policy, although agents do facilitate the application process.