Income verification is the process of substantiating an applicant's earned and unearned income to support financial underwriting and suitability-especially for large policies or annuity sales. Evidence can include W-2s, tax returns, K-1s, pay stubs, employer letters, investment statements, or business financials. Verification helps confirm insurable-interest economics, prevents over-insurance, and documents the ability to pay premiums without undue hardship. For broker-dealer channels, income verification also supports suitability and Regulation Best Interest files.

Large cases and broker-dealer sales require income verification. Producers request W-2s, K-1s, or CPA letters to support financial justification and suitability, especially for high premiums or premium-financed designs.