What document is required to accompany an application when replacing an existing life insurance policy?

The requirement for a signed statement by the applicant regarding the replacement is essential to ensure transparency and protect the interests of the policyholder. This document typically serves to inform the applicant about the implications of replacing an existing life insurance policy, including the potential loss of benefits, changes in premium costs, and the impact on the policyholder’s insurability.

This signed statement is designed to confirm that the applicant understands the reasons for the replacement and has considered the potential consequences. It acts as a safeguard against possible misrepresentation or misunderstandings that could arise during the application process. By collecting this information, insurance companies can maintain ethical standards and provide clearer communication about the policies being offered.

In contrast, while a copy of the original policy, a financial statement regarding income, or an underwriter's approval may be relevant in different contexts, they are not typically required to accompany the replacement application. The original policy copy might be requested during the underwriting process, but it is not mandated at the time of replacement application submission.