Life Insurance Medical Exam

Many Australians applying for life insurance will not require a medical exam.  For those who do, we’ve put together a handy guide explaining many of the requirements and rationale behind life insurance medical exams.

Busting the myth

It is a common myth that all people will require a medical exam when taking out life insurance, however the truth is very different.

The fact is that most life insurance applicants will not require a medical exam, and the insurance companies are continuing to work on improved insurance applications and underwriting processes that further reduce the need for medical exams.

When will a medical be required?

Medical exams will be required for a variety of reasons when applying for life insurance.

One of the major triggers for a medical exam is the disclosure of a pre-existing medical condition.  If you disclose in your life insurance application that you have an existing condition, the insurance company may request a medical so that they can find out more about the condition.

Another trigger for a medical exam is your age.  This age differs from one insurer to the next, but generally the older you are the more likely it is that a medical will be required.  The reason for this is that we generally become more susceptible to serious medical conditions as get older.

The final medical exam trigger comes about when high amounts of insurance are required.  The trigger amounts do vary between insurers, but generally when applying for very high amounts of life insurance the insurer will request a medical due to their increased exposure and risk.

What does the medical exam involve?

The medical requirements will differ depending on the level of risk the insurer believes exists.

In minor cases the life insurance company may only require a medical report from your doctor, without any requirement for you to attend in person.  In this case the doctor will prepare a report based on his or her previous experience and knowledge of your health.

The next step up will be blood tests, and potentially a blood pressure test.  Increasingly insurers are using services where a qualified nurse will visit you at your home or workplace to complete the tests.  This is a convenient option for both you and the insurer, and generally only takes ten minutes with no financial cost to you.

In more serious cases the insurer will require a full medical exam.  Sometimes this may be with your existing doctor, and other times the life insurance company may nominate their own doctor.  The specific requirements of the medical exam can differ depending on the insurance company’s reasons for requesting the medical in the first place.

Can I avoid a medical exam?

If you have nothing to hide there should be little to fear from a medical exam, but for some people the idea of visiting a doctor or having their blood taken is not very appealing.

Medical requirements do differ from insurer to insurer, so if one life insurance company is insisting on a medical exam it may be worth enquiring with other insurers to see if they will offer you cover without the need for a medical exam.