A Look at Life Insurance Policies with and without a Medical Exam
Many term life insurance carriers require a medical exam when you apply. Some don't. Here's a look at the impact of having an exam or not.
Term Life Insurance With No Medical Exam
Term Life Insurance with no medical exam has a tendency to be more expensive than medically underwritten policies. That's because, generally speaking, the carriers average out everyone's risk and charge accordingly. So, if you are in good health but choose to purchase no physical life insurance, you may end up paying a higher premium than necessary.
Most of the life insurance carriers that do not require a medical exam will still inquire about your medical history and lifestyle. Based on your answers, they might set the premium rates higher or lower.
Some companies issue policies without asking any questions about medical history. This increases the risk to them, so they tend to charge higher premiums and set lower coverage amounts.
Term Life Insurance with a Medical Exam
It might seem inconvenient (or even unpleasant) to get a medical exam, but it can benefit you.
The insurance carriers that offer term life insurance with a medical exam, require an exam to get an accurate idea of your health situation. It helps them to rule out health problems, identifying conditions that might increase your risk of dying. Once they know about your health, they can assign you an appropriate rate based on risk. If you're healthy and your risk of dying seems low, you're likely to get a lower rate than someone with health issues.
The medical exam is usually performed by a paramedical professional or nurse. For your convenience, you can schedule it at your home or place of work. It usually takes about 30 minutes or less. The exam consists of basics such as checking vital signs, a blood test and urinalysis. In some cases, the carrier may want additional tests, such as an EKG/ECG.
While having a medical exam isn't usually something to be concerned about, be aware that it can reveal a health condition you weren't aware of. Also, if you are declined term life insurance based on what the exam reveals, it could impact your ability to become insured elsewhere.
Term Life Insurance With a Conditional Medical Exam
Some term life insurance carriers require a medical exam only if it seems warranted after asking health and lifestyle questions. For example, if they find out that you are a smoker, had a serious illness or want a high coverage amount, they might require an exam.
To learn more about term life insurance and the application process, contact AIG Direct today. Our licensed professionals can help you decide if having a medical exam as part of the application process makes sense for you or not.