Question

Jonah is a 22 year old pharmacist who has applied for a whole life insurance policy. Underwriting required a paramedical and blood work which found he has Type 1 early onset diabetes. They also found that he has an at fault accident and 2 speeding tickets within the last 2 years on his driving record. Given this scenario which of the following statements is most correct? This policy will:

Answer 1

The whole life insurance policy for Jonah, who has Type 1 early onset diabetes and a poor driving record, is likely to be offered at a higher premium or possibly denied due to the increased risk to the insurer.

Step-by-step explanation:

Given Jonah's medical condition of Type 1 early onset diabetes and his driving record, which includes an at-fault accident and two speeding tickets in the past two years, it is most likely that the whole life insurance policy will either be provided at higher premium rates or potentially denied coverage. Insurance underwriting takes into account a person's health status and lifestyle risks when evaluating their application. In Jonah's case, these factors present a higher risk to the insurer since people with diabetes may face additional health complications, and a poor driving record indicates a higher likelihood of accidents.