Why life insurance needs medical exams
[social_share]Many life insurance companies require that an applicant gets a medical exam before they will agree to write the policy. Although there are ways around this, this is usually a good way to get the cheapest forms of life insurance.
Life insurance is calculated in terms of life expectancy. For this reason, life insurance can be more or less expensive according to the applicant’s actual circumstances.
There are a number of factors life insurance companies use to estimate a person’s life expectancy. Some of these factors are the age of the applicant as well as health history, occupation, education, and parents’ ages. There are also various health indicators such as height and weight and whether the person smokes. But the best predictor of a person’s life expectancy is their health.
This is why most life insurance companies insist on a medical examination, usually carried out by a doctor but occasionally by a nurse, to be paid for by the applicant. This examination will test for fitness and allow the medical professional to look for any indications of poor health.
There are some life insurance policies that don’t insist on medical examinations. These policies tend to be far more expensive than those requiring an exam, as the life insurance company has less information to work with. Many people who have average but not good health often go for this no-exam option, when in fact they would lower their premiums with a policy that requires the exam.
Sometimes life insurance is available for an applicant under a certain age, usually 30 or 35, without a medical examination. As well, life insurance arranged through an employer generally doesn’t need the exam. This is because employment life insurance is usually an annual policy and must be renewed every year. If there are enough employees then they will form a pre-defined group, meaning the life insurance company has enough information on the applicants to offer a policy without a medical exam.
