Over my 25+ years selling life insurance I have had a lot of people ask me about medical exams. "Who pays for the exam?" and "will needles be involved?" seem to be a couple of the biggest concerns. Over the years, exam requirements have changed, so let's take a quick look and see what the medical exam is all about.
The process starts when an application is completed. If an exam is required, the agent will contact an approved paramed exam company and have a nurse schedule a time to meet with the insured at their home or work. The insurance carrier pays for the exam which is good.
When the nurse arrives they will have all the supplies they need, including devices to check blood pressure, height and weight. More than likely they will need a urine sample and some blood to send back to the lab. Drinking plenty of fluids beforehand can make that part a lot easier and less time consuming.
Years ago, I had a client who was deathly afraid of needles, thus making her blood pressure spike. Trying to convince an underwriter that the client's blood pressure was usually normal was fruitless. We eventually took the business to another carrier that didn't require an exam.
One of the more important factors of whether there will be an exam or not is the face amount of the policy someone is applying for. Some companies will require an exam for policies over $100,000, but we have one carrier who doesn't require an exam for policies (term or whole life) below $250,000. Instead they will just require medical records. Rest assured that a $1 million policy will require an exam.
An interesting point here is that insurance companies that don't require an exam may have higher premiums. This is because they recognize that they aren't all the information necessary and pass that higher risk on in the form of premiums.
During the COVID epidemic, clients didn't necessarily want nurses (who apparently had visited other people) in their homes. Many insurance companies adjusted and cut down on the exam requirements.
Another factor is that AI is now being used more by analyzing medical records. This has sped up the underwriting process but there is still room for improvement when it comes to accuracy.
Don't let a fear of needles prevent you from getting the coverage you need to protect your family or business. When you get a quote from our website you'll be able to see if an exam is required from that insurance carrier. You may not even need an exam!
Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. Please subscribe to this blog!
