What To Expect In A Life Insurance Medical Exam
Chances are, you know you need
life insurance if you have loved ones who count on you for financial
support. A payout from a policy would
help them pay the bills and keep them afloat if something happens to you.
But you might be dragging your
feet when it comes to applying for life insurance because you’ve heard you may
have to take a medical exam. Perhaps you don’t like the inconvenience of giving
up your time to be poked or prodded. Or maybe you’re worried about what the
exam will uncover.
Keep in mind, though, that you
shouldn’t let the prospect of getting a medical exam deter you from getting
life insurance. The exam probably isn’t nearly as bad as you think. Knowing why
some insurers require medical exams and what it entails can help put your mind
at ease.
Why Life Insurance Companies
Require a Medical Exam
Life insurance companies use a
process called underwriting to determine how much of a risk you are to insure.
Insurers need to calculate the life expectancy of applicants. This helps
insurers price life insurance policies accurately to protect themselves
financially.
It also helps prevent healthy
people from overpaying for coverage to subsidize those who aren’t as healthy.
Healthier applicants are more likely to get lower insurance rates. And those
with health conditions and at older ages will pay more or could possibly be
declined for coverage.
So a big part of the underwriting
process involves gathering information about an applicant’s health. Insurers
will ask you to fill out an application with questions about your medical
history, prescriptions, your family’s medical history (parents and siblings),
and your driving record, dangerous hobbies and plans for international travel.
A fully underwritten policy
(which takes all medical and personal information into account) typically
requires a medical exam to verify the information you provide and determine
whether you have any health conditions that could affect your life expectancy.
What a Life Insurance Medical
Exam Entails
A life insurance medical exam
doesn’t require you to give up an entire day. It can take just 15 to 45
minutes, depending on what tests are included.
You’ll generally be asked
questions about your medical history during a phone interview before your exam,
and the examiner will review them again in-person. Here’s a sample of the type
of information you should have on hand:
· Names and dosages of medications, for past and current conditions.
· Names, addresses and phone numbers of doctors visited in the past five years.
· List of medical conditions, dates of diagnoses, treatment, treatment outcome and treating physician contact information.
· Driver’s license number and expiration date.
During the exam, your height,
weight, pulse and blood pressure will be recorded. You likely will have to
provide a urine sample and have blood drawn to test for health issues such as
elevated cholesterol or blood sugar levels, and to screen for nicotine and drug
use.
If you’re over age 50 and
applying for a high amount of life insurance, such as $1 million and up, you
might be required to take an electrocardiogram (EKG) which is painless.
Electrodes will be placed on you to record the electrical activity in your
heart. The guidelines for who needs an EKG will vary by insurer.
You won’t have to undress during
the exam, but it’s good to wear loose clothing if your test involves an EKG. Occasionally some insurers might require
an X-ray or treadmill stress test, which needs to be done at a doctor’s office
or clinic. If you’re age 70 or older,
you might have to take an additional test of your cognitive ability.
How to Get a Life Insurance
Medical Exam
Not only is a life insurance
medical exam relatively quick, but it’s also easy to get one. Insurance
companies partner with paramedical companies that provide testing services,
such as ExamOne and APPS Para Medical Services.
Typically, a representative from
the medical testing service will contact you to schedule an appointment. The
insurer will cover the cost of the exam.
You can choose to have the test
done at your home or workplace, and a nurse or paramedical professional will
come to you. If you choose your workplace, keep in mind that it could be
awkward to deliver the urine sample from the bathroom to your examiner.
Or you may be able to have the test done at one of the paramedical service’s exam centers.
Delaying the exam will only slow
the process of getting insurance coverage. So you’ll want to schedule your exam
for the earliest possible date.
How to Prepare for a Medical
Exam
The results of your medical exam
will play a big part in the rate you’ll pay for life insurance. So it’s
important to take the test seriously. Granted, you won’t be able to make major
changes to your health in the short period between applying for insurance and
taking the exam. But there are things you can do to get the best results
possible.
· 24 hours before the exam: Limit salt and high-cholesterol foods such as red meat; avoid over-the-counter medications such as antihistamines and nasal decongestants.
· 12 hours before the exam: Refrain from alcoholic beverages and strenuous exercise, which can raise blood-pressure levels.
· =strong>One hour before the exam: Avoid caffeine and nicotine; drink a glass of water. Being hydrated will help with the blood test.
· At the exam: Have a photo ID and application paperwork; wear short sleeves or sleeves that can be rolled up so your blood can be drawn and blood pressure can be taken
· When scheduling your exam, ask whether you need to fast. You might have to avoid eating and drinking anything other than water during the 12 hours before your exam.
Getting the Results of Your
Exam
You may be able to access the
results of your blood and urine tests, depending on the paramedical company
that conducted the test. For example, ExamOne—which is one of the top
paramedical services—provides results within seven to 14 days after an exam.
Applicants can register on the ExamOne website and be notified by email when
their results are available.
To find out whether you can get
your exam results, ask the representative you speak with when you schedule your
exam. Or contact the paramedical company’s customer service.
Other Ways Insurers Get
Information About You
In addition to your application
and medical exam, insurers gather information about you in a variety of ways.
They get more information about your health by getting your medical records
from your doctor, by using a third-party company such as Milliman Intelliscript
to check your prescription history, and by using the MIB Group database to
verify information on your application.
Insurers will check your motor
vehicle report for violations that would show that you engage in risky
behavior. They’ll generally check
public records to verify your personal information, find out what property you
own, and see if you have a criminal record or other information that shows you
are a risk to insure. They may even use credit in their assessment of your
risk.
Expect to be asked about planned
travel outside the U.S. Your application will be postponed if you’re traveling
to certain countries, such as those listed as Level 4 risk by the U.S.
Department of State.
Some insurers will look at what
you post on social media to see if you’re engaging in risky behavior. And if
you apply for coverage worth several million dollars, you might have to provide
third-party financial statements such as tax returns or documents from an
accountant.
Insurers use all of this
information to determine your underwriting classification—which is also called
a risk or rate class. Insurers usually have preferred and standard rate classes
but might also have preferred plus and standard plus classes. They usually also
have a substandard category for people with more severe health conditions.
Those in the preferred plus and preferred classes get the lowest rates. To qualify for the best rates, you must generally be in good health with no tobacco use in the past three to five years, have a clean driving record, no history of drug or alcohol treatment, and no family history of heart disease or cancer before age 60.
How to Avoid the Medical Exam
You can avoid taking a life
insurance medical exam if you’re worried about how your health will affect your
rate or ability to get coverage—or if you simply don’t want to bother with an
exam.
Many insurers offer no-exam life
insurance policies. Companies such as Haven Life even offer a “fully
underwritten” policy that doesn’t require an exam. Fully underwritten policies
tend to be the most affordable option for many applicants, especially if you’re
healthier and younger. That’s because they offer the most information to the
insurer, which uses that information to accurately price a policy.
These three types of underwriting
don’t involve a medical exam.
· Accelerated underwriting:
Many life insurance providers today offer no-exam policies and a speedier
application process. There are also
options for fast life insurance, where providers use data and algorithms to
quickly decide on a term life insurance rate for you. These options are
generally available to younger (under 50 or 60), healthier applicants.
· Simplified issue: The
simplified issue underwriting process does not require a medical exam.
Applicants have to answer a few questions about medical history and lifestyle.
There might be a check of third-party data sources, such as prescription
history.
Because less
information is gathered and no medical exam is required, simplified issue
policies will have higher rates than fully underwritten and accelerated
underwriting policies – even for healthy people. It’s also common for insurers to limit the amount of coverage
available under a simplified issue policy.
· Guaranteed issue: You don’t
have to take a medical exam or answer health questions to get a guaranteed
issue policy. These policies are a way to get coverage if you’re in poor
health. They tend to be tailored to older adults with limited financial resources
who are looking for a small policy to provide for funeral and final expenses.
And guaranteed
issue policies are usually the most expensive type of policy for the amount of
coverage you get. If you’re young and
healthy, push past any fears you might have of taking a medical exam. Then
you’ll be more likely to get the coverage you need at the best price.
Posting Komentar untuk "What To Expect In A Life Insurance Medical Exam"