Why do some life insurance providers require physicals and others don't?

[sunshine]

For the last 20 years of my career I've used life insurance through my employers and none of them required a physical. I'm now thinking of being self employed and want continuity so am applying for insurance on my own. Some providers (for example NYL) want physicals, blood tests, 45 minute questionaires, etc. It's not a big deal for me, but inconvenient and seems inconsistent.

 

[kim5398]

@sunshine Some carriers have accelerated UW programs that don’t require a physical and others don’t. As long as you are a standard or better risk class you should be able to find coverage with a good carrier and only have to answer health questions.

 

[sunshine]

@612to907 They said it would be 30, and mine took 45! The person on the call had to list out every single disease or mishap or drug under the sun. It took forever.

 

[hannahjane]

@sunshine The underwriting process is factored into the policy pricing and mortality expectations.

Some policies are priced for no exams (generally higher) some are priced for exams (generally lower).

The industry is currently making a bet that we can use data to replicate the favorable mortality results provided by an exam.

Conventional wisdom is that results will be 10-15% higher mortality when comparing traditional exams to data. Mostly because of tobacco and weight misrepresentation.

 

[sunshine]

It's interesting then that the quotes I'm getting as an individual with exams are higher than my employer group options with no exams. I would have thought exams mean more accurate, and less risk. It seems like there are too many factors and I can't really compare apples to apples.

I'm also finding the questions to be very negative leaning. Not once did they ask me if I exercise, or eat healthy, or have pets, or attend church, etc.

 

[marked]

@sunshine Complain about the length of the interview and then get mad they didn’t ask about if you have pets or go to church….. lol

 

[sunshine]

@marked I’m commenting on how biased and invasive the process is, not the length of time.

 

[brojoe67]

@sunshine It's because those "positive" factors like working out or (checks notes) going to church(?) actually have very little impact to your mortality probabilities.

Someone with decent labs, okay biometrics, and never goes to the gym is more-or-less in the same boat as someone who has the same details, but goes to the gym 5 days a week, and attend church twice a week.

The mortality tables tell us these statistics. If something has an appreciable effect on the likelihood of you dying, trust me, it'd be in the questions.

 

[612to907]

@sunshine Again, GROUP insurance the GROUP insurance with no exams the insurance company is insuring the group not just you. Why would they ask if you attend church? The questions are meant to gauge risk.

 

[sunshine]

@612to907 GarysSword mentioned that premiums for insurance with exams are typically lower than those without exams, hence my comment since I expereinced the opposite. Your point about groups is abundantly clear. Like I said, there are clearly many factors and it's not easy to have apples to apples comparisons.

 

[jeshurun1111]

@sunshine They were speaking of privately purchased policies.

Group insurance ends when you leave work, so there's even less chance than usual that they'll ever have to pay, hence a low premium

 

[sunshine]

I’m not a churchgoer myself but FWIW https://www.cnn.com/2016/05/16/health/religion-lifespan-health/index.html

 

[angie4777]

@sunshine The agent for Transamerica asked if I had a pet. I thought that was kind of a strange question but I could also see how having a pet is good for many aspects of your life.

 

[success1969]

@sunshine More Carriers are able to not subject applicants to medical exams because they are able to pull information from the MIB and a prescription history. If something comes back, questionable more will be required up to a medical exam. Underwriters are qualifying applicants and the screening process is very necessary...it is like buying a race horse...you obviously want a healthy horse and not one who has a broken leg, that would be a bad investment and you would lose on your bet and your money. Insurers are horse buyers, and they want the best for their investment. It's a business like any other business, and they count on statistical data. Group insurance is very much statistical whereas Individual has more risk involved, so they have more safeguards in place. Insurance is necessary because of the debt society we live in. If you didn't have debt and have real savings, you wouldn't need insurance. You would be self insured, so to speak. Life insurance can be very good if understood, and it does protect your families wealth in some cases and prevents unnecessary financial hardships in some cases.

 

[growingfaithma]

@sunshine Hello,

Like most service providers, certain companies have requirements (such as an exam) based on what they can offer and at what price. It's about the risk, so many companies may vary (and appear inconsistent) but so will prices, length of coverage, etc.

The goal is that you are protected and the policy you choose addresses what is best for your situation and fits your budget.

Kudos for the entrepreneur journey and realizing you still need coverage. If you still have questions after chatting with the current company you are considering, then let me know.

Our agency is addressing FREE QUOTES (no obligation) so one can see options and decide what will be beneficial for their family.

Feel free to contact me at 770-841-9505 (ok to LVM if I miss call) or schedule here:

https://calendly.com/sglife-clientconsult

Have a good one!

Shanieka Gibson
Life Insurance Agent
Chosen Agency
@Shan21Creations (FB), LinkedIn

 

[christianmormon]

@sunshine Depends on your age and how much death benefits you wants which will in some case determine for health exam.