Eligibility Requirements

Last updated: May 31, 2016

What Does Eligibility Requirements Mean?

Eligibility requirements, in the context of insurance, are requirements that an individual must meet in order to qualify for an insurance policy. Insurance companies use these requirements to screen out high-risk people. There are different eligibility requirements for different types of insurance.


Insuranceopedia Explains Eligibility Requirements

Insurance companies establish eligibility requirements because the policies offered are designed to only cover certain losses and certain types of people. For example, only members of a family would qualify for a family health insurance plan. A neighbor or friend would not qualify.

More specifically, life insurance companies look at a number of different factors to determine if a person is eligible for a policy. For example, they may look at age, height, weight, occupation, tobacco and alcohol use, and so on. People who meet a certain criteria for a policy may purchase one because not everyone poses a low enough risk for approval.


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