Almost every major life insurance company requires new policy applicants to submit to a medical exam that includes a blood and/or urine test for drugs and alcohol. There are several legitimate reasons for this type of test, and it can become difficult to obtain an appropriate life insurance policy without submitting to these examinations.
Function
The blood and urine tests conducted by life insurance companies as part of the underwriting process are designed to search for and evaluate a number of different aspects of your particular health situation. Typically, these tests will search for nicotine, illegal drugs, alcohol, and other controlled substances in your body. Additionally, these tests will determine your cholesterol level, protein counts and identify any diseases you may have.
Purpose
The purpose of testing for drug and alcohol presence in your body is so the life insurance company can more accurately determine how much financial risk you present to it if it ultimately decides to issue you an insurance policy. Previous experiences by the insurance company have demonstrated that individuals with high levels of drugs or alcohol in their bodies have resulted in a higher number of claims, so it is necessary for the company to know your status to determine accurately its potential monetary outlay.
Significance
The significance of drug and alcohol tests, as well as the other medical exam results, is that your life insurance policy, if issued, will be much more accurately priced to suit your lifestyle. A properly priced policy results in a much better chance that the insurance company will be able to properly address its potential financial risk and continue to offer prices that are competitive.
Benefits
Since your drug and alcohol tests result in a life insurance contract with a premium that is appropriately customized to your specific situation, the benefit is a policy that is exactly accurate to your particular level of risk. After your exam information is reviewed and a final price determined, you will have a much better gauge of your risk status as compared to your peers.
Misconceptions
Many people attempt to cheat on their paramedical exams in order to appear healthier and to hide the presence of drugs and alcohol in their systems. It is nearly impossible to successfully mask or otherwise make undetectable the presence of illegal substances. The tests that life insurance companies conduct on your blood and urine are usually designed to search for the most common substances and elements that consumers can purchase to make these attempts, and if found, the application will either be completely denied or result in a policy with a significantly higher premium.
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