Why do I need to have an exam to get life insurance?
Answers | 5
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.
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.
Easy way to remember this " the fewer the questions the higher the cost. "