Life Insurance: Testing And Privacy

Life insurance companies use medical exams to determine eligibility and pricing for certain types of policies. The exam includes a medical questionnaire and a physical examination. The physical examination typically involves checking your height, weight, pulse, blood pressure, and taking blood and urine samples. The results of these tests can be used to screen for a variety of health issues, including high cholesterol, diabetes, HIV/AIDS, nicotine usage, recreational drug use, and STDs. The exam can be conducted at your home, workplace, or a designated exam center, and the entire process typically lasts around 30 minutes.

Blood and urine samples

• Sexually transmitted diseases
• Cholesterol levels, including LDL, HDL, and triglycerides
• Hemoglobin A1C, fructosamine, and glucose levels (indicators of diabetes)
• Creatinine, hemoglobin, and proteins (to check for kidney disease)
• Urine acidity (for kidney issues or diabetes)
• Confirmation of application responses on drug and tobacco use
• Tobacco, nicotine, prescription, and recreational drug use
• HIV or AIDS
• Liver disease
• Enzyme levels

The results of these tests help life insurance companies assess your health, confirm the information on your application, and screen for illegal drug use. They are used to determine your risk class, which impacts the cost of your policy. Generally, healthier individuals receive lower premiums, while those with higher health risks may face higher costs or limited coverage options.

• Get a good night's sleep the day before your exam.
• Drink a glass of water about an hour before your appointment.
• Make sure you bring a photo ID.
• Be prepared to discuss any health issues.
• Avoid strenuous activities for 12 hours before your exam.
• Avoid salty foods, foods high in cholesterol, alcohol, caffeine, and nicotine products for 12 hours before your exam.

Health questionnaires

• Gather information about your medical history, including a list of medications, doctors visited, medical conditions, and treatment details.
• Be honest and disclose any relevant information, such as current or past health issues, prescription drug use, and family medical history.
• Review your application to ensure consistency with the information provided during the questionnaire.
• Be prepared to answer questions about your lifestyle and social habits, including smoking and drug use.

Identity verification

• Driver's License Check: During the medical examination, the technician will typically ask to see your driver's license or another form of government-issued identification to confirm your identity. This step helps ensure that the person taking the exam is, in fact, the individual applying for life insurance.
• Medical History and Records: Applicants are usually required to provide detailed medical histories, including information about past and current prescriptions, medical conditions, and the names and contact details of doctors they have visited recently. This information aids in verifying the applicant's identity and cross-referencing it with their medical records.
• Third-Party Data Verification: Life insurance companies often collaborate with third-party companies, such as the Medical Information Bureau (MIB), to verify the information provided by applicants. The MIB database contains details about an individual's life insurance applications, medical conditions, treatments, and prescription history. This cross-referencing helps ensure the accuracy of the applicant's information.
• Motor Vehicle Reports and Public Records: In addition to medical records, life insurance companies may review motor vehicle reports and public records to verify personal information, driving history, and any risky behaviours or violations.
• Social Media Presence: Insurers may also scrutinize an applicant's social media presence to identify any risky behaviours or inconsistencies in the information provided.
• Financial Statements: For life insurance applications involving substantial coverage amounts, insurers may request third-party financial statements, such as tax returns, to verify the applicant's financial background and capacity.

These identity verification procedures are essential to ensure the accuracy of information provided by applicants and to mitigate the risk of fraud or misrepresentation. They play a crucial role in the underwriting process, enabling life insurance companies to make informed decisions about eligibility and premium rates.

Physical examination

The physical examination for life insurance is a simple process that can be completed at home, in the workplace, or at a local exam centre. The technician will usually begin by checking your driver's license or other government-issued ID to verify your identity.

The physical examination typically includes:

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

Other examination requirements could include an electrocardiogram (EKG), a stress test, and/or a chest X-ray, depending on the insurance company's underwriting guidelines, your age, and the desired coverage amount. Carriers may request additional tests based on these factors.

The physical examination is an important part of the life insurance application process as it helps determine your health and mortality risk, which, in turn, affects your coverage eligibility and premium.

Additional tests

The type of additional tests you may be required to take depends on your age, the type of insurance policy coverage you are applying for, and the sum assured. If you are over 50 and applying for a large amount of life insurance, you may be asked to undergo an electrocardiogram (EKG) and a treadmill stress test.

If you are applying for a term insurance plan, you may be asked to undergo a treadmill test. This is in addition to the basic medical tests that every policy buyer has to undergo, such as a complete blood count, kidney function test, fasting plasma glucose test, and a routine urine test.

If the sum assured exceeds a certain amount (e.g., Rs 10 Lakhs in India), you may be required to undergo a medical test. Similarly, if you are above a certain age (e.g., 35 years in India), you may need to take a medical test.

If you have a family medical history of underlying illnesses, you may also be asked to undergo additional tests to evaluate the hereditary risk factors.

If you are a smoker, you are at a higher risk of developing various illnesses, and therefore, you may need to take specific medical tests.

Frequently asked questions