Monday, October 28, 2013

Exactly What Does A Phrase Life Insurance Coverage Health Check Contain

Life insurance can save your family in the midst of a tragedy.


Insurance is a business based on risk. When a company issues a policy on an individual, it is betting that the individual will live long enough to pay premiums until the policy is profitable. It bases this risk assessment on exhaustive analysis of mortality and morbidity statistics. It's common practice for all applicants who want a term life insurance policy to undergo some kind of physical examination.


What Is Term Life Insurance?


Term and whole life insurance are the most common forms of life insurance sold. Whole life insurance covers the insured for his entire life, regardless of his health at the time of death. Term life insurance covers the insured for a set period of time: 10, 20 and 30 years are common periods. If the insured is still alive at the end of that period, the policy ends and the insurance company keeps all premiums paid. The insured has the option of buying a new policy, but at a rate adjusted to reflect his current age and state of health.


Why an Exam?


By subjecting each applicant to a medical exam, the insurance company can better predict her level of risk. This allows insurers to increase the premium payments for people who pose a high risk, or even deny them coverage altogether. On the plus side, people in unusually good health can qualify for exceptionally inexpensive term insurance.


What Can You Expect?


An insurance medical exam runs a spectrum based on potential risk. In some cases, you'll simply be asked some basic questions about your medical history, which the company verifies via your medical records. In other cases, you'll visit with a nurse who will take your vital statistics and some fluid samples. A full physical workup by a doctor is also a possibility. Most insurance companies base which kind of exam to conduct on the level of risk an individual poses. An athletic 22-year-old is less likely to get the full workup than an overweight 45-year-old.


What Happens Next?


Once you've completed your exam, the insurance company will analyze the results and compare them with various statistics. Once that is finished, one of three things will happen. The policy might be issued at the value you originally agreed upon. It might also be declined because the exam found an untenable health risk. A third option is called a "rating"; in this case, the company will insure you, but only at a higher cost than originally discussed. You will be informed of the new price and have the option of declining or accepting the adjusted offer.









Related posts



    Life insurance can help your family financially cope if you pass away, which is why many individuals apply for policies. There are many factors--from your health to your age to your habits--that c...
    When you buy a life insurance policy, you may be required to have a physical exam. This requirement varies from company to company and policy type to policy type, but generally the necessity is de...
    How Do Life Insurance Companies Check Medical Background?Before an insurance company issues a life insurance policy, it typically reviews your medical history. This is because the company does not...
    The first time that you buy life insurance can be an overwhelming experience (see Reference 1). Deciding which company to buy from, and the amount of insurance you need, takes some dedicated resea...
    Life insurance is a good way to ensure that family members will have enough money to cover expenses that you may leave behind in the form of unpaid bills and funeral costs. Obtaining life insuranc...