Do you find yourself as the linchpin of your family, the one whom both directly and indirectly relies on for financial and materialistic support? Perhaps, you are contemplating the idea of purchasing life insurance to provide your loved ones with financial security, just in case life takes an unexpected turn. However, the daunting prospect of a life insurance medical examination might be causing you some hesitation. If so, you are not alone. Many individuals postpone getting life insurance because they are uncertain about what this medical examination entails.
Let’s approach this matter differently. Firstly, do not let the thought of a medical examination deter you from obtaining life insurance. Rest assured, it’s not as intimidating as it may sound. These examinations serve a significant purpose, and I am here to elucidate why they are crucial and what to anticipate.
Why Life Insurance Companies Require Medical Exams
Let’s begin by understanding the “why” behind these medical examinations. Life insurance companies are not conducting these exams to inconvenience you; rather, they are engaged in the assessment of risk, and these examinations are instrumental in that process. When they underwrite your policy, they are essentially determining the level of risk associated with insuring you.
Underwriting is a vital practice that allows insurance companies to set accurate policy prices. This ensures that they can safeguard their financial interests while offering you a fair and just deal. Furthermore, it prevents healthy individuals from overpaying to compensate for those who may have less fortunate health conditions. It’s a matter of fairness.
The Nitty-Gritty of the Medical Exam
Now, let’s delve into what transpires during one of these medical exams. While it may sound like a lengthy ordeal, in reality, it can be quite swift, typically concluding within 15 to 45 minutes, contingent upon the required tests.
Before the actual examination, you will likely engage in a phone interview where they inquire about your medical history. During the examination itself, the examiner will review this history with you in person. Here’s a checklist of what you should prepare:
1. Medication Details: Bring along a list of the names and dosages of any medications you have taken for past and current medical conditions.
2. Doctor Information: Compile a list of doctors you have consulted in the last five years, complete with their names, addresses, and phone numbers.
3. Health History: Provide an overview of your medical conditions, including the dates of diagnoses, treatments, outcomes, and the contact information of your attending physician.
4. License Details: Have your driver’s license number and its expiration date readily available.
During the examination, the examiner will record your height, weight, pulse rate, and blood pressure. You may also be required to provide a urine sample and have your blood drawn. Please do not fret; these tests are conducted to check for issues such as high cholesterol, blood sugar levels, and to screen for nicotine or drug usage.
If you are over 50 and applying for a substantial life insurance amount, such as one million dollars or more, they might request an electrocardiogram (EKG). Rest assured, this is a painless procedure designed to assess your heart’s electrical activity, and its necessity can vary among insurers.
No need to disrobe for the examination, but wearing comfortable, loose-fitting clothing is advisable if an EKG is part of the procedure. In some cases, insurers may also include an X-ray or a treadmill stress test, which typically occurs at a medical facility or clinic.
Individuals aged 70 or older might be subjected to a cognitive ability test, which, in the grand scheme of things, isn’t too taxing, is it?
Arranging your medical examination is a straightforward process. Insurance companies often collaborate with specialised testing companies for this purpose. You will receive a call from them to set up an appointment, and here’s the kicker – the insurer covers the cost. You can choose to have the test conducted at your home or workplace, with a nurse or paramedical professional visiting you. However, do be prepared for the potentially awkward experience of carrying a urine sample from your office restroom!
Alternatively, you can opt to have the examination at one of the testing centers operated by these companies. The key here is not to procrastinate. The sooner you schedule your examination, the sooner you can proceed with securing your insurance coverage.
Now, the results of your medical examination significantly influence the life insurance quote you will receive. Therefore, it is crucial to take this process seriously. While you cannot transform your health overnight, there are some strategies to prepare for the examination and attain the best possible results:
When scheduling your examination, inquire whether fasting is necessary. You might need to abstain from food and beverages, except water, for 12 hours before your appointment.
Waiting for the examination results can be a somewhat nerve-wracking experience, but it is an integral part of the process. The timing may vary, but depending on the testing company, you might gain access to your blood and urine test results. Some companies, like ExamOne, offer results within a week or two. Additionally, you can register on their website to receive email notifications when your results become available.
Simply reach out to the company representative when scheduling your examination to ascertain when and how you can access your results.
Additional Methods of Assessment
Apart from the medical examination, insurance providers employ various other means to gather information about you. They scrutinise your medical records, review your prescription history through third-party organisations, and cross-verify your application details using databases such as MIB Group.
However, that’s not all; they might also examine:
1. Driving Record: To identify any risky behaviors.
2. Public Records: For verification of personal information.
3. Property Ownership: To gauge your assets.
4. Criminal Record: To spot any red flags.
5. Credit History: For financial assessment.
6. Social Media Activity: To check for risky behavior.
7. Third-Party Financial Statements: Such as tax returns, particularly if you are applying for substantial coverage.
All of this data assists them in determining your underwriting classification, which subsequently affects your insurance rates. Typically, insurers categorize individuals as preferred, standard, preferred plus, and standard plus, with a substandard category for those with more serious health issues.
If the notion of a medical examination genuinely does not sit well with you, there are alternative options to consider. Many insurance providers offer no-exam life insurance
policies. Companies like Haven Life even offer fully underwritten policies that bypass the need for a medical examination. These options are particularly appealing if you are relatively young and in good health.
There are three types of underwriting that do not involve a medical examination:
1. Accelerated Underwriting: This approach relies on data and algorithms to make rapid decisions, making it ideal for younger, healthier individuals.
2. Simplified Issue Life Insurance: This type of policy requires no medical examination, only a few questions about your health and lifestyle. However, these policies may have slightly higher premiums.
3. Guaranteed Issue Life Insurance: No examination or health-related questions are involved, typically aimed at older adults seeking coverage for funeral and final expenses. However, these policies can be relatively expensive.
Therefore, if you are in good health, do not let the thought of a medical examination deter you. Embrace it, for it is the path to securing the coverage you need at the most favorable price. After all, life insurance is about safeguarding the future of your loved ones, and that is a worthwhile investment.