Physicals And Life Insurance: How Long After?

Life insurance is a vital financial product for those who want to ensure their family is provided for after their death. The application process can be daunting, and one of the most off-putting aspects is the prospect of a medical exam. However, this is a routine part of most insurance applications and is usually quick and painless. The exam helps insurers make informed decisions about applicants' health and risks, allowing them to price policies fairly and accurately. While it is possible to get life insurance without a medical exam, these policies are generally more expensive and offer less coverage. The application process can take anywhere from 24 hours to a few months, depending on the type of policy and various other factors.

Medical underwriting

During medical underwriting, insurance companies evaluate an applicant's health profile, age, gender, hobbies, and other factors to determine if they are eligible for coverage and what their rates will be. This process is called underwriting, and it takes an average of four to six weeks from start to finish, but it can be faster if the applicant is eligible for accelerated underwriting.

The first step of the underwriting process is the application quality check, which includes a phone interview that covers the applicant's health history, hobbies, and finances. The second step is the medical exam, which is similar to a basic physical exam and is free of charge for the applicant. The third step is the prescription check, where the underwriter checks all the medications the applicant has been prescribed over the past three to five years. The fourth step is the attending physician statement, where the insurer requests a summary of the applicant's medical history from their doctor. The fifth step is the motor vehicle report, which details the applicant's driving history. The sixth step is the credit history check, where the insurance company requests a soft credit check.

The entire underwriting process can be as fast as 24 hours or take as long as a few months, depending on the type of life insurance policy and other factors.

The physical exam

The life insurance physical exam is usually the second part of the medical exam, the first being a questionnaire. The physical exam is similar to a regular yearly check-up and is performed by a healthcare professional. The exam is likely to include:

• Measuring your blood pressure, heart rate, height, and weight
• Collecting blood and urine samples for lab testing
• An electrocardiogram (EKG) or treadmill stress test, especially if you are over 50 and applying for a high amount of insurance, or if you are older and the insurance amount is lower
• A cognitive ability test, if you are 70 or older
• An X-ray or treadmill stress test, occasionally

To prepare for the physical exam, it is recommended that you:

• Drink plenty of water
• Avoid caffeine and alcohol
• Get a good night's rest
• Avoid strenuous exercise
• Eat healthily, limiting salt, sugar, fat, and high-cholesterol foods
• Wear lightweight clothing and short sleeves for the weigh-in and blood draw

No-exam life insurance

Types of No-Exam Life Insurance Policies

There are three main types of no-exam life insurance policies:

• Accelerated Underwriting: Companies use data provided by the applicant, as well as third-party data and algorithms, to decide on coverage. This type of policy is beneficial for healthy individuals who want to bypass the medical exam. However, eligibility for accelerated underwriting tends to decrease with age.
• Simplified Issue Life Insurance: This type of policy does not require a medical exam and has a short application process. It is designed for individuals who want fast coverage without a complicated underwriting process. Simplified issue life insurance may be more expensive than accelerated underwriting and typically has lower coverage limits.
• Guaranteed Issue Life Insurance: Guaranteed issue policies, often whole life policies, are used to cover funeral or final expenses. They are not based on an individual's health or other risk factors, so pricing is usually much higher, and coverage amounts are limited.

Cost of No-Exam Life Insurance

The cost of no-exam life insurance varies and is based on factors such as age, lifestyle, coverage goals, and medical history. While no-exam policies may be more expensive than traditional policies, in recent years, many companies have worked to offer competitive pricing by obtaining information about applicants quickly and electronically.

Benefits of No-Exam Life Insurance

• Expedited process: By eliminating the need for a medical exam, no-exam life insurance can provide coverage more rapidly.
• Convenience: Avoiding a medical exam saves time and effort for individuals, particularly those who are healthy and do not want the hassle of an exam.
• Accessibility: No-exam life insurance is a viable option for individuals with known health issues who may struggle to obtain traditional insurance but still want to protect their families.

Preparing for the exam

The life insurance medical exam is a standard part of the application process. It's important to be prepared for the exam, as it can impact the outcome of your application and the cost of your premiums. Here are some steps to help you prepare:

• Know What to Expect: Familiarize yourself with the typical components of a life insurance medical exam. This includes recording your medical history, taking blood pressure, blood and urine samples, and checking your height and weight. Being aware of what's involved can help reduce anxiety and ensure you're ready.
• Maintain Good Health: In the days leading up to the exam, focus on maintaining or improving your health. Eat a balanced diet, stay hydrated, get adequate sleep, and avoid excessive caffeine or alcohol consumption, as these can impact your exam results.
• Provide Accurate Information: Be honest and accurate when answering questions about your health history and lifestyle habits. Providing false or misleading information can lead to issues with your application and may result in higher premiums or even denial of coverage.
• Fast as Instructed: If you are required to fast before the exam, be sure to follow those instructions carefully. Eating or drinking certain substances can affect your exam results, so it's important to adhere to any fasting guidelines provided by the examiner.
• Relax and Manage Stress: Try to stay calm and relaxed before and during the exam. Stress and anxiety can elevate your blood pressure, which may impact your exam results. Find healthy coping mechanisms that work for you, such as deep breathing or meditation.
• Retake Opportunity: In some cases, insurance companies may allow you to retake the medical exam if you've made significant health improvements since your previous exam. If you feel you could achieve better results, don't hesitate to inquire about the possibility of a retake.

Remember, the life insurance medical exam is just one part of the application process. Providing complete and accurate information, both on the exam and in your application, is crucial to ensuring a smooth process and obtaining the coverage you need.

The role of the underwriter

Underwriting is the process insurance companies use to determine coverage eligibility, the risk of insuring an individual, and the premium they will charge for coverage. An underwriter's main role is to ensure that applicants are charged the appropriate premium for the desired level of insurance coverage. They are responsible for collecting and assessing information about an applicant's medical records, credit history, driving records, and more. This information is then used to determine the risk an applicant poses to an insurance company, i.e., the likelihood of their death before the end of the policy term.

Underwriters use specialised software and actuarial data to determine the likelihood and magnitude of a risk. They evaluate and analyse the risks involved in insuring people and assets, establishing pricing for accepted insurable risks. The term underwriting means receiving remuneration for the willingness to pay a potential risk.

The underwriting process can take as little as 24 hours or as long as a couple of months, or even longer in some cases. The length of time depends on various factors involving an applicant's health and lifestyle profile. These factors include health history, family health history, age, gender, height, weight, occupation, smoking habits, alcohol consumption, hobbies, international travel, and more.

Underwriters may also require applicants to undergo a medical examination, which is usually administered by a nurse. The exam may include blood pressure readings, urine and blood samples, height and weight measurements, and a medical questionnaire. In some cases, an electrocardiogram (EKG) may also be required, especially for older applicants or those applying for a high amount of life insurance.

Frequently asked questions