I have never heard of annuities asking for medical information? Yet, the textbook states: As you can see, variable annuities are a game of life and death. To estimate how long an investor will live, insurance companies often require full disclosure of medical history and/or a check-up by a doctor of their choosing. The medical data is then given to an actuary, whose job is to analyze risk and estimate how long they expect their customer to live. From there, the insurance company makes payouts that represent their estimate of the investor’s life expectancy.
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Yes, asking for medical history for annuities and insurance is a common practice!
For example, here is a specific application that requires it:
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For insurance I agree 100%. I have been at it for 22 years and I have never seen any of our companies request medical history for an annuity. Insurance, every time. I will study it this way though, if that is the way it is on the exam. Thanks for getting back to me.
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