Life Insurance Physicals: Are They Necessary?

Life insurance is a crucial step in protecting your family's future. While the process of obtaining life insurance may seem daunting, it doesn't always require a physical exam. Some insurers offer policies without a medical exam, which is ideal for those who want a hassle-free process or know they aren't in the best health. However, these no-exam policies usually come with higher premiums and lower coverage limits. On the other hand, traditional life insurance policies with medical exams can provide more coverage options and potentially lower rates, especially for those in good health. The medical exam helps insurance companies evaluate your health and calculate their risk, which influences your eligibility and premium costs. Ultimately, the decision to opt for a physical exam or not depends on your unique needs, preferences, and health situation.

What is a life insurance medical exam?

A life insurance medical exam is a process used by insurance companies to determine the risk of applicants, including their expected life expectancy. This helps insurers price life insurance policies accurately and protect themselves financially. The exam is relatively painless and quick, usually taking between 15 to 45 minutes. It consists of two parts: a questionnaire and a basic physical exam.

The Questionnaire

The policy underwriters will assess your risk by considering both your medical and lifestyle information. You will be asked about your medical history, past and current prescriptions, and your family's medical history. You will also be asked about any dangerous hobbies and international travel plans.

The Physical Exam

The physical exam will include recording your height, weight, pulse, and blood pressure. You will likely be asked 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 drug use. If you are over 50 and applying for a high amount of life insurance, you may also be required to take an electrocardiogram (EKG).

Preparation

There are some things you can do to prepare for your life insurance medical exam to ensure the best possible results. In the week before your exam, eat healthily and avoid non-essential over-the-counter medications, alcohol, and strenuous exercise. The night before the exam, get a good night's sleep and gather any necessary paperwork, such as your picture ID, list of prescriptions, and health history. On the morning of the exam, avoid caffeine, nicotine, and a high-fat breakfast.

Do all insurers require a medical exam?

Not all insurers require a medical exam. Some companies provide no-medical-exam life insurance policies, which are also referred to as "no-physical" policies. These policies are often sought by those who don't want the hassle of a medical exam or know they are not in the best possible health but still want to protect their families.

No-medical-exam policies may be more expensive than traditional policies, as insurers take on additional risk by not knowing how healthy you are. They also usually come with lower coverage limits.

The most common types of no-exam policies are guaranteed issue, simplified issue, and group life insurance.

Guaranteed issue life insurance

Guaranteed issue life insurance is a type of whole life insurance with automatic acceptance, meaning no medical exam or health questions are required. This type of insurance is available for people aged 50 to 80 and is designed to help cover end-of-life expenses such as funeral costs or medical debt. Policies build cash value over time, and coverage amounts can go up to $25,000, although some insurers may offer higher amounts. However, this type of insurance tends to be significantly more expensive, and some policies have an initial waiting period of two to three years during which the full death benefit may not be paid out.

Simplified issue life insurance

Simplified issue life insurance is another form of whole life insurance, but acceptance is not guaranteed. It usually involves filling out a short health questionnaire and providing medical or prescription records for review. This type of insurance is typically available to those aged 50 to 80 and may also have an initial waiting period of two to three years. Premiums can vary based on age, health, and coverage amount, which can be as high as $100,000 depending on the insurer.

Group insurance

Group insurance is a type of term life insurance that is often offered as an employee benefit, although it may also be available to members of professional, civic, or religious organizations. This type of insurance typically has limited coverage, such as one or two times the insured person's annual salary, but higher levels of coverage may be added. It is often affordable or free and does not require a medical exam, but it may only be active while the insured person remains with the employer or organization.

Even with no-medical-exam policies, insurers may still ask health questions or use past medical records to make an assessment.

A life insurance medical exam, also known as a paramedical exam, is similar to an annual physical. It includes a basic physical exam and a series of questions about your medical history and lifestyle. The exam is usually conducted by a certified paramedical professional and takes place within a few days of the initial life insurance application. The insurer will assist in scheduling the exam, which can be done at a licensed testing facility, the insured person's home, or their workplace, and typically lasts less than an hour.

The medical exam consists of two parts: a health history screening and a physical exam and tests. The health history screening involves confirming the answers provided on the insurance application and asking additional questions about the insured person's lifestyle, health history, and family medical history, including tobacco, alcohol, and drug use; psychiatric or psychological issues; and any chronic or blood/immune system diseases or disorders.

The physical exam and tests include basic measurements such as height, weight, pulse, temperature, and blood pressure. It may also involve blood, urine, or saliva samples, as well as a chest X-ray, electrocardiogram (EKG), or treadmill stress test in some cases.

Insurers use the results of the medical exam, along with other personal data such as age and gender, to calculate their risk of insuring an individual and determine coverage amounts and premiums. This process is known as underwriting. Poor results on a medical exam could lead to higher premiums or even disqualification from traditional life insurance.

In addition to no-exam policies, some companies offer alternatives to a full medical exam. For example, RAPIDecision® Life from eFinancial allows individuals to defer their medical exam for up to six months after their policy is issued, during which they can take steps to improve their health and potentially qualify for a better rate.

To ensure that your medical exam results present an accurate picture of your overall health, there are several steps you can take before the exam:

• Drink plenty of water to stay hydrated.
• Cut back on red meat and foods that can elevate blood cholesterol levels.
• Get a good night's sleep the day before the exam.
• Refrain from using over-the-counter medications such as decongestants and antihistamines, which could interfere with drug screening results.
• Avoid drinking alcohol or smoking, as these can raise your blood pressure and pulse.
• Refrain from strenuous activity or cardiovascular exercise, as these can elevate your pulse and blood pressure.
• If fasting is required, follow the instructions provided.
• Avoid caffeinated drinks like coffee, tea, or soda, which can raise your blood pressure.
• Wear short sleeves to make it easier to draw blood samples and check your blood pressure.
• Drink plenty of water one to two hours beforehand if providing a urine sample.

What does a life insurance medical exam consist of?

A life insurance medical exam is a routine part of most insurance applications. It usually has two parts: a medical questionnaire and a physical examination. The entire process generally takes around 30 minutes.

Medical Questionnaire

You will be asked a series of health-related questions designed to give the life insurance company an idea of how healthy you are. These questions cover:

• Medications you take, their dosages, and how often you take them.
• Your family medical history.
• Doctors you've seen recently, their recommendations, and whether you've been hospitalized recently.

Physical Examination

The technician will usually begin by checking your driver's license or other government-issued ID to verify your identity. They will then start the physical exam, which typically includes:

• Checking your height, weight, pulse, and blood pressure.
• Taking blood and urine samples.

Other examination requirements could include an electrocardiogram (EKG), stress test, and/or a chest X-ray, depending on the insurance company’s underwriting guidelines, your age, and the desired coverage amount.

Exam Results

The lab will screen the blood and urine samples for a variety of possible health conditions, including:

• High cholesterol.
• Diabetes.
• HIV/AIDS.
• Nicotine usage.
• Recreational drug use.
• Prescription drug use.
• Sexually transmitted diseases (STDs).
• Liver disease.
• Kidney disease.
• Risk of diabetes.

How do you prepare for a life insurance medical exam?

Preparing for a life insurance medical exam is important if you want to get the best results possible. While you won't be able to make major changes to your health in a short period, there are some things you can do to ensure you're as ready as possible. Here are some tips on how to prepare for a life insurance medical exam:

In the Weeks Leading Up to the Exam:

• Drink plenty of water to help dilute concentrations of sugar and protein and clear toxins from your system.
• Limit your salt and alcohol intake. Too much salt can lead to dehydration and concentrated urine, while alcohol can increase your blood pressure.
• Eat a healthy diet rich in whole grains, fruits, vegetables, and low-fat dairy products. Avoid processed foods with added sodium.
• If you smoke, try to quit as soon as possible. While you won't undo long-term damage, quitting before the exam may yield some health improvements.

The Day Before the Exam:

• Avoid red meat, as it is high in cholesterol.
• Avoid over-the-counter medications such as antihistamines and nasal decongestants, as they can increase blood pressure.
• Get a good night's sleep. Lack of sleep can also increase blood pressure.
• Avoid strenuous activity, as an elevated heart rate could negatively impact your results.

On the Day of the Exam:

• Avoid caffeinated drinks, such as coffee, soda, and tea.
• Drink plenty of water. Being well-hydrated makes it easier to provide urine and blood samples.
• Avoid strenuous exercise, as it can raise your blood pressure.
• Have a photo ID, such as a driver's license, state-issued photo ID, or passport, ready.
• Have your medical information ready, including a list of medical conditions, treatments, prescription medications, and contact information for your physician(s).
• Wear short sleeves or sleeves that can be easily rolled up for the blood pressure test and blood sample collection.
• Avoid alcohol, caffeine, and tobacco for at least 24 hours before your exam.
• Schedule your exam for the morning, especially if you need to fast for a certain number of hours beforehand.

Remember, the life insurance medical exam is a standard part of the application process, and it can help you secure the best rates. By following these preparation tips, you can ensure that your results accurately reflect your health and well-being.

What are the pros and cons of no-exam life insurance?

No-exam life insurance policies have emerged as a viable alternative to traditional life insurance policies that require a medical examination. Here are the pros and cons of no-exam life insurance:

Pros

• Faster Application and Approval Process: No-exam life insurance policies have a simplified application process, eliminating the need for a medical examination and associated delays. The approval process is often quicker, sometimes taking just a few days or even 24 hours.
• Convenience and Accessibility: These policies cater to individuals seeking quick approval, those with health issues or pre-existing conditions, older applicants, and people who want to avoid the hassle and inconvenience of scheduling and undergoing a medical exam.
• Coverage for High-Risk Individuals: No-exam policies can be a good option for high-risk individuals, such as those with pre-existing conditions or risky occupations. They may obtain coverage through employer-sponsored group life insurance programs that don't require health questions or exams.
• No Invasive Procedures: No-exam policies allow individuals to skip invasive medical procedures like blood tests and physical exams.

Cons

• Higher Premiums: No-exam life insurance policies are typically more expensive than medically underwritten policies. Insurers charge higher premiums to balance the additional risk they take on by not assessing the applicant's health.
• Limited Death Benefit: No-exam policies often have set death benefit limits, and the coverage amounts may be capped at lower levels compared to traditional policies. For example, guaranteed issue coverage is usually limited to a range of $5,000 to $25,000.
• Not Suitable for All Ages: Age restrictions may apply. For instance, guaranteed issue life insurance is typically offered to older individuals, often between 50 and 75 years old.
• Not Available for All Health Conditions: No-exam policies are generally not available to individuals with life-threatening conditions or those who use tobacco products.

Frequently asked questions