If you're in the market for life insurance, you may have been shopping for a policy that offers you coverage with no exam, versus a policy that's fully underwritten. While the concept of no exam life insurance is rather self-explanatory, you may be wondering what's involved with a fully underwritten life policy. Here's what you need to know.
A fully underwritten life insurance policy generally requires a medical exam to establish the premium rate you'll pay based on the results. In addition to the life insurance application, a fully underwritten life insurance policy typically includes a blood and urine sample, as well as checking your height and weight. There is typically no cost to you for the exam - whether you accept the policy or not.
In most instances, lab results are processed rather quickly - typically within a few weeks. However, this depends on your overall health. For example, if you have a complex health history, it may take more time for the life insurance company to request health records or obtain a physician's statement if additional information is needed to make a decision. Once your lab results are processed, the life insurance company may offer you a policy based on your medical exam findings, as well as other factors such as your family health history, occupation and age.
Benefits of a life insurance medical exam
One advantage that a fully underwritten policy has over a no exam policy, is that the insurance company can establish your rates based on your verifiable good health. For example, you may have received a good rate quote prior to your exam, but because medical findings indicate an exceptional health history of regular physicals, a normal height to weight ratio, low cholesterol, normal blood pressure, etc., you may qualify for an even better rate.