Financial risk appraisal evaluates your income and financial position and determines if the total amount of insurance you currently have in force—and are applying for—is reasonable for the economic loss that is being insured. All or some of the following information may be asked for during the application process.

• Annual Income—Your W-2 form and pay statements are part of your basic financial profile and are requested in most applications,

• Personal and Business Tax Returns—These are requested to verify the annual income of individuals who request very large amounts of life or disability insurance and individuals who are business owners.

• Personal Balance Sheet—This is sometimes requested for very large amounts of insurance.

• Business Financial Statements—These are sometimes requested for very large amounts of insurance.