Life Insurance Medical Exams
Life insurance premium pricing and coverage eligibility are based on an individual's gender, age, and health status, and thus when applying for life insurance you will undergo medical examination.
Relatively small amounts of death benefit coverage, typically less than $75,000, will only require that you answer a life insurance agent's medical questions for some companies.
However, for larger amounts of coverage--and often if you want lower premiums on the lower amounts of coverage--the medical exam for life insurance coverage will be a two-step process.
WHY DO YOU NEED A MEDICAL EXAM? You need a medical exam for life insurance coverage because the insurance company needs to know what sort of payout risk you are to them (that sounds cold, but it's strictly business).
Life insurance companies employ highly paid statistical wizards called actuaries to figure out these risk factors for them.
Based on your risk of dying, the insurance company decides what to charge you for your premiums and may set upper limits on how much you will be allowed to be insured for based on this data as well.
Insurance companies, of course, cannot know exactly who you are as an individual and therefore cannot know exactly what your risk of death is, so they have to base your premiums on statistical averages for the group you get placed in based on your data.
For instance, on average men still die a few years sooner than women, and consequently even if you are still a very young man you will be charged slightly higher premiums than a female your age, all other thing being equal.
Also, every year or couple of years that you live you, on average, get closer to death, so even if everything else about you basically stays the same you'll have to pay more money in premiums for the same amount of death benefit coverage at 30 than you would have if you had signed up for the life insurance at 25.
The medical exam is the third and often the most important factor in determining your premiums and whether you are insurable.
It's possible for a medical exam to deem you uninsurable or ineligible for a given amount, if you have too many pre-existing conditions.
WHAT TO EXPECT AT YOUR EXAM For the first part of the medical exam, you'll simply answer some questions posed to you by the field agent or online if you're applying that way.
First the agent will make sure he's clear on how much life insurance coverage you want.
Next, you will have to answer: questions on your personal medical history; questions on your family's medical history; how to contact your primary care physician; on whether or not you smoke, do certain hard drugs, and what level of physical exercise you get.
Assuming you will be needing part II of the medical exam, the insurance company will schedule a nurse or paramedic from a company that specializes in doing this kind of exam for life insurance companies (because different companies have different underwriting strictures and standards), to come to your home or your private office (or you can opt to go to one of their local clinics).
This exam is usually scheduled for within 48 hours or less from the time of application, because your application cannot be processed without this data.
Now typically you'll be tested for: height & weight; blood pressure; resting heart rate; blood work to test levels of nicotine, etc; and on a urinalysis.
Everything needed is brought to your place by the medic.
This typically takes 15 to 30 minutes.
In special situations regarding very large amounts of death benefit, advanced age, or pre-existing conditions uncovered in part I, there could be additional medical testing such as needing to walk a treadmill.
Your results are kept confidential except they are of course sent to the life insurance underwriting office.
They're also stored for future reference in a central database Medical Information Bureau which is accessed by close to 500 life insurance companies in the nation.
You're allowed to ask for copies of the findings.
You don't pay for your life insurance medical exam, either.
FINAL RESULTS Some people are unpleasantly surprised by their medical exam results resulting in their qualifying only for higher premiums or a lesser amount of coverage than they wanted.
A few people get turned down entirely because they are an undue risk to the insurance company, though there are life insurers who specialize in high risk individuals (but the premiums are very high).
So have a honest and accurate idea of yourself and your health before applying for life insurance.
Relatively small amounts of death benefit coverage, typically less than $75,000, will only require that you answer a life insurance agent's medical questions for some companies.
However, for larger amounts of coverage--and often if you want lower premiums on the lower amounts of coverage--the medical exam for life insurance coverage will be a two-step process.
WHY DO YOU NEED A MEDICAL EXAM? You need a medical exam for life insurance coverage because the insurance company needs to know what sort of payout risk you are to them (that sounds cold, but it's strictly business).
Life insurance companies employ highly paid statistical wizards called actuaries to figure out these risk factors for them.
Based on your risk of dying, the insurance company decides what to charge you for your premiums and may set upper limits on how much you will be allowed to be insured for based on this data as well.
Insurance companies, of course, cannot know exactly who you are as an individual and therefore cannot know exactly what your risk of death is, so they have to base your premiums on statistical averages for the group you get placed in based on your data.
For instance, on average men still die a few years sooner than women, and consequently even if you are still a very young man you will be charged slightly higher premiums than a female your age, all other thing being equal.
Also, every year or couple of years that you live you, on average, get closer to death, so even if everything else about you basically stays the same you'll have to pay more money in premiums for the same amount of death benefit coverage at 30 than you would have if you had signed up for the life insurance at 25.
The medical exam is the third and often the most important factor in determining your premiums and whether you are insurable.
It's possible for a medical exam to deem you uninsurable or ineligible for a given amount, if you have too many pre-existing conditions.
WHAT TO EXPECT AT YOUR EXAM For the first part of the medical exam, you'll simply answer some questions posed to you by the field agent or online if you're applying that way.
First the agent will make sure he's clear on how much life insurance coverage you want.
Next, you will have to answer: questions on your personal medical history; questions on your family's medical history; how to contact your primary care physician; on whether or not you smoke, do certain hard drugs, and what level of physical exercise you get.
Assuming you will be needing part II of the medical exam, the insurance company will schedule a nurse or paramedic from a company that specializes in doing this kind of exam for life insurance companies (because different companies have different underwriting strictures and standards), to come to your home or your private office (or you can opt to go to one of their local clinics).
This exam is usually scheduled for within 48 hours or less from the time of application, because your application cannot be processed without this data.
Now typically you'll be tested for: height & weight; blood pressure; resting heart rate; blood work to test levels of nicotine, etc; and on a urinalysis.
Everything needed is brought to your place by the medic.
This typically takes 15 to 30 minutes.
In special situations regarding very large amounts of death benefit, advanced age, or pre-existing conditions uncovered in part I, there could be additional medical testing such as needing to walk a treadmill.
Your results are kept confidential except they are of course sent to the life insurance underwriting office.
They're also stored for future reference in a central database Medical Information Bureau which is accessed by close to 500 life insurance companies in the nation.
You're allowed to ask for copies of the findings.
You don't pay for your life insurance medical exam, either.
FINAL RESULTS Some people are unpleasantly surprised by their medical exam results resulting in their qualifying only for higher premiums or a lesser amount of coverage than they wanted.
A few people get turned down entirely because they are an undue risk to the insurance company, though there are life insurers who specialize in high risk individuals (but the premiums are very high).
So have a honest and accurate idea of yourself and your health before applying for life insurance.
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