What triggers the requirement for evidence of insurability in a variable universal life policy?

In a variable universal life policy, the requirement for evidence of insurability is triggered when the face amount of the policy is increased. This requirement is in place because the insurer needs to assess the risk associated with the additional coverage being provided. When the face amount is increased, the potential financial liability for the insurer also rises, necessitating a thorough evaluation of the insured’s health status and other factors to determine whether they qualify for the increased coverage.

Policies may have stipulations that state if the policyholder wishes to increase their coverage, they must provide updated information regarding their health and possibly undergo a new underwriting process. This ensures that the insurance company can appropriately assess the risk and ensure that the additional coverage aligns with their underwriting guidelines.

The other options, such as the policyholder's age, the death of a beneficiary, or a decrease in the face amount, do not typically trigger this requirement, as they do not directly relate to an increased risk or liability for the insurer. The focus on assessing risk is paramount whenever there is a change that could affect the overall exposure of the insurance company.