Why do I need to have an exam to get life insurance?

Asked by Joseph

5 Answers

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Hello Joseph, Here is the short answer: life insurance carriers attempt to match your mortality to their rate classes, and your exam reveals a lot..

Here is a a bit more detail. Factors that include your present state of health go into the underwriting decision. That’s not all that goes into it, but that is one of the reasons for obtaining blood and urine from you. A lot can be gleaned from bodily fluids; nicotine, specific disease markers from overworked organs, medications, alcohol, and
a whole host of other things – not all of them negative. Some are things which might signal a possible shortened you lifespan. Some indicate that you are really, really healthy (in which case you would pay less than the standard rate). For a carrier to know more, they must ask questions, get blood and urine, and request medical records. Were I to make a choice about whether to get the exam done vs not doing the exam, I would go with the exam. Why? Because life insurance without an exam will almost always costs more and such policies have certain limitations. Think about it: they know less about you so they will tend to ask for more premium to cover the potential losses across the entire book of business. If you were an insurance company, would you take a bet on you - with no health related info about you? You might say yes to that, but would you say yes to that for someone you never met, who might be far less healthy than you may be? Would you charge the same premium for a person who is less healthy as you would for someone who is very healthy? You asked “why do I need to have an exam...? Fact is, you don’t need to, but the best (lowest) rates are usually with carriers that require exams. You can skip the exam and simply pay more. You may also only be able to purchase up to a limit on the death benefit. | 03.24.15 @ 22:15
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 18:27
Answered by Christopher Nesbitt, Insurance Agent in San Clemente, CA
To minimize risk. If you were renting out one of your rooms, wouldn't you want to know if your applicant is a pyromaniac?
The insurance company is offering to pay your beneficiaries a lot of money in the event of your UNTIMELY death. They don't want to HAVE to pay it anymore than you don't want to have an untimely death. | 04.07.15 @ 20:53
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 18:27
L
Answered by Larry
Hi Joseph, there are at least two that I know of highly rated and well admired life insurance companies that will insure you with no need for a medical exam. If you'd like more information about this feel free to contact me and I can guide you through the steps. | 04.08.15 @ 00:14
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 18:27
Answered by Larry Gilmore, Insurance Agent in Marysville, WA
Why do you need an exam to get life insurance? Well you don't actually, However, to get the best possible cost for life insurance, your good health creates your discount. You might come across a plan that asks 3 questions and a plan that asks 30 and requires a lab and health history. The former can cost approx 50 =100% more for the same death benefit as the latter.

Easy way to remember this " the fewer the questions the higher the cost. " | 02.23.16 @ 23:38
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 18:27
Answered by Larry Gilmore, Insurance Agent in Marysville, WA
You don't necessarily have to get an exam to purchase life insurance. That said, the price won't be the lowest you can get either. The exam is done as part of the underwriting process to prove your current good health which is how you get the best price possible for your coverage. | 03.03.16 @ 07:43
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 18:27
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