Why go for a medical when it comes to life insurance policies?
Going for a medical when it comes to getting a life insurance policy can seem to be a waste of time but can actually work in your favour when it comes to your premium and exclusions to your policy. As we all know, your premiums are based on the actual risk that you pose to the insurance company. Going for a medical gives the company a much better base for assessing the risk that you pose.
Look at it this way – the actual situation may even prove better than what the statistics suggest it should be. Statistically speaking, a forty five year old male is likely to be in worse shape than a twenty five year old. However, the reality is that a lot of us have adopted healthier eating habits and lifestyle choices as we have aged and we may be in better condition in our later years than in our younger years. This is, of course, not always the case but a physical is really the only way to prove that you are really fit.
It is also a good way to minimize the exclusions to a life insurance policy. Most life insurance policies will exclude pre-existing conditions for a certain period before you are fully covered. Let’s say, for example, you have a heart attack brought on by high blood pressure within three months of taking the policy out. Let’s also say that you had been treated for high blood pressure in the months before you took your policy. Your insurance company might decline to pay out on the grounds that it was a pre-existing condition.
If you have gone for a physical and the doctor has ascertained that there are no such pre-existing conditions or they may make a note of any such conditions. The insurance company will then either exclude the pre-existing conditions completely or will load your premiums so that you are covered in the event of a problem. Whilst this may cost you more in terms of a monthly premium, it will mean that your beneficiaries are taken care of in the event of your death.
Basically, a physical is a good way to go – forewarned is forearmed. Should the physical highlight problem areas, the insurance company cannot later claim that they had not been informed of them. It basically gives them less wiggle room when it comes to declining to pay out premiums. (That is why it is so important to be one hundred per cent honest on your application for a life insurance policy.) There is nothing worse than having paid your premiums for years only to have your beneficiaries lose out because you lied on your application form.
When it all comes down to it, a physical works as much in your favour as it does the insurance company’s. It gives an accurate picture of what your health was like at that particular point in time and makes it easier for the insurance company to accurately determine the risk you pose to them. This in turn makes the premium and cover you are offered fairer.