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3 Benefits Of Undergoing A Life Insurance Medical Exam
A life insurance is essentially a contract agreement between the insurance provider (insurer) and the policyholder. The policy owner agrees to pay premiums for a specific period, and their beneficiaries would be guaranteed payment of a sum of money by the insurer when the policyholder dies or figures in an accident.
Before drawing an insurance contract, most providers would require a medical exam to properly assess the health condition of a prospective client or policyholder. Aside from a review of medical history, a medical exam would generally include the following:
- A record of the height, weight, pulse, and blood pressure of the client
- Urine sample
- Test results for elevated cholesterol or blood sugar levels
- Screening for nicotine and drug use
- Names and dosages of medications for past and current conditions
- Names and contacts of doctors visited in the past five years
- Medical conditions, diagnoses and dates they were done, treatments applied, the outcome of the treatment, and contact information of the treating physician
- Number of driver’s license and its date of expiry
- Electrocardiogram (EKG) for applicants over 50 years of age
- Occasionally, treadmill stress test
- Cognitive ability test for applicants who are 70 years old or over
Being covered by a comprehensive health and life insurance give you and your family peace of mind. Unfortunately, not everyone can acquire insurance. In a report from CNBC, Kaiser research shows that there is a total of 27 million uninsured Americans in 2021.
There are several reasons why an individual would fail to secure insurance. Most of them are workers from the informal economy who don’t have access to job-based insurance or HMOs. Others just can’t simply afford it.
On the other hand, some people are left with no choice after being declined by insurance providers. This happens when an individual ‘fails’ their medical exam—or has been proven to be at risk for certain diseases or is found to be suffering from a pre-existing medical condition.
Why Insurers Require A Medical Exam
Insurance providers require a medical exam because this helps them properly assess your risk level, and ultimately the premiums you’re going to pay. The medical exam will help them discover underlying health factors that may increase or decrease your life expectancy and susceptibility to certain diseases and medical conditions. The more at-risk you are, the higher premiums they may likely charge.
Aside from physical and medical tests, the exam also aims to bring out any lifestyle habits like smoking, drinking, and history of substance abuse. These habits can have a huge impact on your health. Hence, you may find that most insurers would charge higher premiums for smokers compared to non-smokers.
Below are some more reasons why insurers would require a comprehensive medical exam:
- To Confirm Responses On The Application Form
You will be tested and reviewed for any prescription drug use, tobacco use, and if you have any diseases through blood and urine samples. Test results will then be compared with the information that was collected on the application form.
- To Rule Out Certain Health Factors
Height and weight measurements are usually taken during a medical exam to enable the insurer to tell whether a person is overweight. A person’s blood pressure is reviewed where high figures are an indicator that the person is likely to suffer a heart attack. The insurance company will decline insuring such a person because of the risks.
- Assessment Of Potential Risk
The results of the life insurance medical exam will help determine the life expectancy of the person. The exam also enables the insurance company to determine whether to insure you and how much you will be charged for the cover.
Benefits Of Taking A Life Insurance Medical Exam
As a prospective policyholder, there are also several benefits when you agree to undergo a life insurance medical exam. That includes:
- Reduced Premiums
You may be enjoying reduced premiums because the medical exam will help the insurer determine your risk level. This is possible if your test results and medical assessment can prove that you’re generally healthy and at low risk for lifestyle-related diseases.
- Helps You Determine The Status Of Your Health
Going through a life insurance medical exam will give you information about your personal health status, and you can also discover any underlying health conditions you may not have known about.
These underlying health conditions could range from diseases like diabetes, high or low blood pressure, heart disease, and HIV among others. These are conditions that a person may not know existed until after a comprehensive medical exam is done.
- An Opportunity To Learn Your Family’s Health History
Health experts advise that when you are ready to take the life insurance medical exam, you should take some time to familiarize yourself with the medical history of your family. Most likely, a lot of information will be unveiled to you about your family health history as you answer the various questions during a medical exam.
For instance, you could find out the reason your parents did not have a life insurance policy is because your father or mother has a terminal illness that was inherited from one of your grandparents. You may be most likely at risk for diabetes, cancer, and heart problems if these conditions are present within your immediate family.
What To Do If The Insurer Declines To Cover You
The results of a life insurance medical exam may not be desirable and an insurance provider may decline to cover you. But this is not the end of the road, you can still explore other forms of insurance like a guaranteed issue life insurance or group life insurance, for instance.
A guaranteed insurance is available to all persons despite their medical status. Group life insurance could be available as a workplace benefit where you can obtain a set amount of coverage without the need to undergo a medical exam. Even though it is worth taking, a guaranteed insurance policy has low limits of coverage and long waiting periods compared to regular life insurance.
In the CNBC report stated earlier, unemployed individuals may also qualify for financial help from private insurers through the public marketplace. There are also available options if your state has its very own healthcare exchange.
Summary
Taking a life insurance medical exam should be looked at with the same weight of importance as enrolling into the insurance itself. The medical exam may take time because of the many procedures that may be involved, but it’s worth it especially when the results are out and you get a better look at your own health and medical condition. The exam results will also help you organize your finances in the event that you will be required to pay higher premiums.
