What primarily determines the medical evidence required for key person insurance?

The determination of the medical evidence required for key person insurance is primarily influenced by the sum assured required. Insurers assess the potential financial impact on the business in the event of the key person's death or incapacitation. A higher sum assured indicates a greater risk to the insurer, which typically necessitates more comprehensive medical evidence. This can include medical history, current health status, and sometimes even more detailed evaluations or tests to mitigate the insurer's risk.

While factors like health history, age, and type of business play a role in the underwriting process, they are secondary to the amount of insurance being sought. The sum assured is directly linked to the financial interest that the business has in the key individual, making it the most significant factor driving the need for medical evidence.