The Term Life Insurance Application Process

2. Completing The Medical Examination
Insurance medical examinations are generally done by para-medicals, who are licensed health professionals, and are independent contractors hired by the insurance company. The basic medical examination can include a physical exam, urine specimen, and blood work.
For higher amounts of life insurance coverage, a treadmill, EKG, and X-ray are usually required.

- Get a good night's rest the night before your exam.
- Fast for at least eight hours before the exam.
- Don't smoke or chew tobacco for at least an hour before the exam.
- Avoid coffee, tea, or other caffeine drinks prior to the exam.
- Avoid alcoholic beverages for at least 36 hours prior to the exam.
- Limit salt intake and high-cholesterol food 24 hours before your exam.
- Don't engage in strenuous physical activities 24 hours before the exam.


3.  Medical Underwriting
Each insurer sets its own underwriting standards. Then each application for insurance is reviewed to determine if the applicant meets those standards. Life insurance underwriting requires total medical underwriting and risk classification.  Medical underwriting involves assessing the applicant's risk of death.  An underwriter reviews your life insurance application and the results of your medical examination. Underwriters have the option to order whatever additional medical tests they deem necessary  Life insurance applicants are grouped together into risk classes and charged premiums relative to their risk classification. Applicants in a higher risk classification are charged a higher premiums.  The insurance company wants to see if you have any health condition that could eventually affect the insurance company's
risk. Blood samples will test for the presence of antibodies or antigens to the HIV virus; cholesterol and related lipids; liver or kidney disorder; diabetes; antibodies to hepatitis; prostrate specific antigen; and immune disorders. Urine samples screen for tobacco/nicotine use, certain medications, cocaine, and other drugs. Remember, medical underwriting differs only slightly from company to company.


4.  Risk Classifications

Preferred
If you are a better-than-average risk, have not used tobacco products in the past 5 years, have an excellent lifestyle and excellent medical history, no significant disease in your family history, with no dangerous hobbies or extended foreign residence,  you may be charged a preferred or super preferred rate.

Standard
If you are considered a typical risk, you will be charged one of the standard rates.

Rated
If you pose an above-average risk, you may be classified as an increased risk and charged a higher premium.

Declined
If you are rated as uninsurable, you may be denied coverage entirely.