Life insurance medical exams are essential to insurers issuing policies. They help insurance companies determine an applicant’s overall health and any potential health risks, which in turn helps them determine the policy’s premium and coverage amount.
In this blog, we’ll dive into the specifics of life insurance medical exams, including what they involve, why they’re essential, and how they can affect your life insurance policy. Whether you’re just starting the application process for life insurance or have questions about an upcoming exam, we’ll provide you with all the information you need to feel confident and prepared.
What Is a Life Insurance Medical Exam?
A life insurance medical also called a “paramedical exam,” is typically required as part of the underwriting process for certain types of life insurance policies. During a medical exam, a trained professional, known as a “paramedic,” will visit the applicant’s home or place of work to collect information about the applicant’s medical history and current health status.
The underwriting process is when insurance companies evaluate an applicant’s personal and current health information to determine the policy premium and coverage amount. The medical exam plays a crucial role in this process.
The paramedical exam helps the insurance company assess the applicant’s health and potential risks. By taking this exam, you’ll be helping the insurance company make an informed decision about your policy, ensuring that your beneficiaries receive the full death benefit outlined in the policy. A life insurance medical exam is essential in obtaining a life insurance policy unless one isn’t required.
You can schedule your medical for a time and location for your convenience. Instead of visiting your doctor, the insurance company will send a medical technician (nurse or paramedic) to your home or office. Alternatively, you can also go to a laboratory facility. The examination process is relatively quick, taking only about 30 minutes or less, but at most 45 minutes, depending on the tests involved.
What Does a Life Insurance Medical Consist Of?
The medical exam comes in a medical questionnaire and a physical examination. Let’s look at what both of these entail.
1. Medical/Health Questionnaire
You can conduct your medical history interview over the phone before or during the physical exam. During the exam, the paramedical examiner will ask health-related questions to give the life insurance company an idea of your health.
Your prescription history is also part of this stage. The paramedic will ask about your medications, how often you take them, and their dosages. How well you manage your health issues weighs in your favor.
The paramedic may also ask about doctors you’ve seen recently, their recommendations, and any recent hospitalizations.
Honesty Is Always Best for Your Policy
Be honest and accurate with your answers and inform the paramedic of any preexisting conditions or medications you are taking, as it will affect the policy’s underwriting decision and could lead to a higher premium or denied coverage. Make sure your answers match the information you provided on your application.
The paramedic will compare the answers you previously submitted. If there are any glaring discrepancies, additional follow-ups may be required, like submitting your doctor’s detailed health history report. Additional verifications will lengthen the underwriting process.
2. Physical Examination
After the questions, the physical examination begins. The paramedical exam includes a range of tests and assessments to determine an applicant’s overall health and any potential health risks.
Standard tests included are:
- Vital signs measurement: This includes blood pressure measurement, temperature, pulse, height, and weight.
- Physical exam: The examiner may perform a physical exam to check your heart, lungs, and abdomen.
- Blood and urine samples: With these samples, the lab will assess your overall health and check for any underlying medical conditions, such as:
- Diabetes: Type 1 and 2 diabetes will impact your life insurance application’s approval and risk assessment. The type of diabetes you have and how well it is managed and controlled will determine the cost of your life insurance policy.
- Hemoglobin A1C: If you don’t have diabetes, the exam will assess your glucose level and if you’re at risk of developing the disease.
- High cholesterol: Elevated cholesterol levels increase the risk of heart disease, as it makes it hampers blood flow. Cholesterol ratios above 5.0 are red flag indicators for heart disease, which could impact your life insurance rates.
- Liver and Kidney Disease: Although neither of these might result in an automatic disqualification from insurance coverage, life insurance companies will consider the results when setting your rate.
- Prescription Drugs: Your current prescriptions impact your eligibility and the cost of coverage, so insurers want to ensure you have included all medications in your questionnaire. It’s better to be upfront, as lying will reduce your chance of approval.
- Nicotine Use: Using any form of tobacco can negatively impact one’s health and lifespan. Smokers typically fall into a separate risk class with higher premiums than non-smokers.
- Recreational Drug Use: Life insurance companies test urine and blood samples for drug use, whether legal or not. If you use drugs such as marijuana, cocaine, methamphetamines, and other illegal drugs, it may result in an automatic denial of your life insurance application.
- HIV/AIDS: While having HIV or AIDS does not automatically prevent you from getting a life insurance policy, insurers will likely require you to pay higher premiums. Like with other severe conditions, if your HIV or AIDS is well-controlled and you follow your doctor’s treatment plan, you may still be eligible for a life insurance policy.
- STDs: Sexually transmitted diseases aren’t usually grounds for declining an applicant. However, guidelines on this differ between companies, and it can impact the cost of your policy premium.
It’s important to note that the specific tests and assessments included in a medical exam can vary by insurer and may depend on the applicant’s age, gender, overall health, and the policy amount. Depending on the life insurer, you may need to undergo additional tests such as a stress test, Electrocardiogram (ECG), pulmonary function test, or eye exam.
The medical exam results are confidential and only shared with the insurance company. The applicant will also receive a copy of the results as your medical exam tests become part of your permanent medical records. You can also reuse the results at another insurance company within six months.
Why is a Life insurance Exam Mandatory?
The life insurance medical exam is necessary because it gives the insurance company important information about your health status and lifestyle. This information helps the company determine your overall health risk, which allows them to set the cost of your life insurance policy.
Insurers will only assume acceptable risks. Clients outside these parameters will either be declined or signed by the company with high premiums and less favorable terms.
To determine where each applicant falls, the underwriter will assign classifications: Preferred Plus (Sper Preferred), Preferred, Standard Plus, or Standard. “Preferred” policyholders receive the lowest premiums.
Where a health exam is optional, policy premiums will be more expensive to reflect the risk of accepting applicants without knowing their medical history.
Learn more about the life insurance underwriting process in this blog post.
Preparing for the Best Outcome of your Medical Exam
There is no magical way of “passing” a life insurance medical test. If you’re an applicant with preexisting conditions, the odds may not fall in favor of favorable rates. However, as we’ve mentioned, applying with a noted condition isn’t an automatic reason for denial. And to increase your odds, there are ways you can prepare for the best results possible.
Leading Up to the Exam
Be honest: When submitting your initial life insurance application, provide accurate and complete information about your medical history and current health status. Failure to disclose relevant information can result in a denied claim or cancellation of coverage.
Get a physical exam: Visit your doctor before the exam to address any potential health concerns and to get a general understanding of your overall health.
You should do this step before submitting your application form in case the uncovered issues don’t have a short-term fix. However, speak with an agent, no matter the result. Agents have insider information about unadvertised leeways and concessions the companies they work for are willing to make.
Schedule a Morning Slot: Schedule your medical exam in the morning. Blood work is usually part of the exam; you must fast beforehand. A morning appointment ensures your fasting period is manageable.
It also allows you to avoid activities that temporarily increase your blood pressure levels, such as morning exercise. Schedule the exam in the morning and avoid physical activities to maintain the accuracy of your test results and smooth the process overall.
12-24 Hours Before the Exam Appointment
Follow Insurer Guidelines: Your insurance company will likely provide guidelines for taking a life insurance medical exam. These instructions may include fasting for a specified time before the exam, typically at least six hours.
Dress Accordingly: Avoid long sleeves and heavy clothing. Short sleeves will facilitate blood sample collection and your blood pressure test. Wearing lightweight clothing will not add excessive weight and enhance your comfort during the examination.
Avoid False Triggers: Fatty, acidic, salty, and high-cholesterol foods temporarily spike your readings. So do sugary food, strenuous exercises, wine and other alcoholic beverages, menstruation, and pain medications. Postpone your morning cup of coffee until after the exam.
Good Night’s Sleep: By ensuring you get a good night’s sleep before a medical exam, you will maximize the accuracy and validity of your test results, as it reduces stress and anxiety and boosts your mood.
Exam Day
Hydrate: Drinking plenty of water flushes toxins from your body and dilates your veins, making it easier for the paramedic to take blood samples.
Be On Time: If you’re visiting an exam center, attend your appointment on time. If you’re expecting an at-home exam, ensure you’re at home and prepared at the scheduled time.
Contact your insurance company if you can’t attend your scheduled medical exam so that they can direct what steps to take next. Additionally, if you cannot participate in the exam due to an illness or other unavoidable circumstances, provide your insurance company with relevant medical documentation to support your case.
If you miss your appointment, there will be delays in the approval of your application and the start of your coverage because of rescheduling.
Be Prepared With Your Paperwork: Print out a list of your medical records with your current conditions and dates of diagnosis to reference for the interview portion of your examination. It will prevent you from accidentally supplying information that contradicts your previous submission.
If you’re on any over-the-counter medication at the exam for pain or other minor ailments, advise the paramedical examiner so they can make a note.
For more information on preparing for a life insurance medical exam, check out this post by ExamOne, a provider of medical exams for insurance companies.
What Happens After the Life Insurance Medical Exam?
It typically takes your life insurance provider a few weeks to review and process your medical exam results. During that time, which we call the underwriting process, they’ll highlight any significant health and other indicators that may indicate a shorter life expectancy.
They may request a follow-up exam if your lab results show any anomalies. Expect a delay in your application review if this occurs.
If the insurer denies you coverage for a health-related reason, consider obtaining coverage through no-exam medical insurance as an alternative option. We’ll speak more about this in the next section.
How to Side-Step a Mandatory Medical Exam
Simplified Issue Life Insurance
Simple issue life insurance doesn’t require applicants to take a medical exam. Instead, the insurance company will ask the applicant to answer a series of basic questions to assess the applicant’s overall health. The questions typically relate to the applicant’s lifestyle, medical history, and family history.
The main advantage of simplified issue life is that it is fast, easy to apply for, and approval can take as little as 24hrs. However, because a medical exam is optional, the coverage options and the amount of purchasable insurance have limitations, unlike traditional life insurance.
While a simplified issue policy can be convenient, it only benefits some applicants. This coverage works best for individuals in good health with no restrictions on their budgets or interests in undergoing a full medical. It’s also an alternative option for those with preexisting medical conditions that exclude them from obtaining coverage through a traditional life insurance policy.
Guaranteed Issue Life Insurance
Guaranteed life insurance does not require a medical exam or health questions. It secures coverage for anyone, regardless of their health or medical issues. The premiums are typically higher than those for other life insurance policies, as the insurer assumes a higher risk in providing coverage.
However, this type of policy can be a good option for those who may not qualify for a traditional life insurance policy due to age or health-related risk factors.
The coverage provided by a guaranteed life insurance policy is limited, and the death benefit is generally lower than that of a traditional life insurance policy. Additionally, the premiums may increase over time, and the policy may include additional riders or restrictions that may limit the coverage.
Compare different policies and speak to an insurance professional to determine if a guaranteed life insurance policy is your best option.
What to Do If You "Fail" Your Medical Exam
If you fail an insurance medical exam, there are several options you can explore:
- Review the exam results: Ask the insurance company to review and explain the failure. Their review will help you understand what specifically caused you to fail the exam and help you address any concerns.
- Obtain a second opinion: If you disagree with the exam results, ask for a second opinion from your doctor. If the results are accurate, your doctor can offer treatments or suggest lifestyle changes to improve your health and help you pass a future exam.
- Re-apply after a waiting period: Some insurance companies may allow you to re-apply for coverage after a specific waiting period has passed. You can focus on improving your health and making any necessary lifestyle changes during this time.
- Consider alternative options: If you cannot “pass” the exam, you may be able to obtain coverage through an alternative policy option, such as guaranteed issue or no-exam life insurance.
- Try a different insurer: Consider other providers if you cannot obtain coverage through your current insurance company. Insurers have different underwriting criteria. You may qualify for coverage with a different insurer.
- Shop around: Compare policies from different insurers and look for one that offers better rates for people with preexisting conditions.
Conclusion
Life insurance medical exams are an essential part of the underwriting process. It determines an applicant’s premium and coverage term as an insurer can weigh the risks and make informed decisions. Opting to buy a policy without one will cost you.
Be honest with your answers and provide accurate and complete information about your medical history and current health status. from the moment you apply. And for the best results, follow the insurer’s instructions and the tips we provided, such as maintaining a healthy lifestyle and managing any preexisting conditions to increase your chances of passing the exam.
The healthier you are, the better your life insurance policy rates.
