What is ‘Proposal Form’?

[Mayank GoyalKeymaster]

Definition: Proposal form is the most important and basic document required for life insurance contract between the insured and insurance company. It includes the insured’s fundamental information like address, age, name, education, occupation etc. It also includes the person’s medical history.

Description: A life insurance company offers a policy on the basis of a proposal form. The form is the most basic requirement for the functioning of the life insurance contract between you and the life insurance company. It needs to be completed by the proposer who may seek the assistance of a life insurance advisor to fill it up.

A proposal form seeks basic information of the proposer and the life assured. This includes the name, age, address, education and employment details of the proposer. The proposal form also gathers information on the medical history of the life to be assured. There are questions pertaining to the health status of family members of the life to be assured. The proposer and the life to be assured have to mention their incomes in the proposal form to satisfy the insurer about their ability to pay for the insurance and the need for insurance, respectively.

Proposal form helps the insurance company to calculate all the potential risks in relation to the insurance policy and hence deciding the premium amount.

Also Read: Role of Actuaries in General Insurance Industry

Sent from my LLD-AL10 using Actuarial Info mobile app

[Author]

Posts