Final answer:
When the amount of insurance is increased in an adjustable life policy, the insurer will typically require the insured to go through an underwriting process to assess the insured's current health status and determine the new premium amount for the increased coverage.
Step-by-step explanation:
When the amount of insurance is increased in an adjustable life policy, the insurer will typically require the insured to go through an underwriting process. This process involves providing updated medical information, including any changes in health conditions or medications. The insurer may also require the insured to complete a new application and potentially undergo a medical examination.
The purpose of this underwriting requirement is to assess the insured's current health status and determine if there are any changes that may affect the risk profile. Based on this assessment, the insurer will determine the new premium amount for the increased coverage.
It's important for the insured to be upfront and accurate with the information provided during the underwriting process. Failure to disclose relevant changes in health conditions or medications could result in the denial of coverage or an increase in premium.