FAQs

There are several reasons why life insurance medical exams are essential to the application process: Risk assessment. Life insurance companies need to assess your overall health and medical history because the information is used to assess the level of risk you pose.

A medical exam may also be required to better understand your health situation and rate class. If you are healthy, a medical exam will often help you get more attractive rates and coverage options. The medical exam, typically referred to as a paramedical exam, is a standard part of both life and disability insurance.

A medical exam for life insurance may include a medical history interview. The interview may be conducted over the phone prior to your medical exam or during the physical exam. You will usually be asked a series of health-related questions designed to give the life insurance company an idea of how healthy you are.

Many reputable insurance companies require you to undergo certain medical tests when you seek health insurance coverage. These pre-medical exams are necessary for obtaining health insurance because they play a significant role in establishing your eligibility for coverage.

• Paying premiumsSome life insurance companies may offer a discount on premiums if you provide your bank account information. You can also set up automatic payments to avoid missed payments and policy lapses.
• Retained asset accountsWhen a life insurance beneficiary receives a death benefit, the insurance company may set up a Retained Asset Account (RAA) in their name. This account functions similarly to a checking account, and the beneficiary is usually given a checkbook. The RAA allows the beneficiary to consider their financial options and access their funds at any time. The insurer guarantees the principal and a minimum interest rate, and the account may also earn interest at a similar rate to bank accounts.

Before issuing a healthcare policy, most insurers insist on pre-medical tests as they want to assess the prospective policyholder’s medical condition. Also, the premium for a policy depends on the results of the pre-medical tests that you have to undergo.

The biggest difference between IUL vs. whole life insurance is how cash value accumulates. With a whole life insurance policy, the cash value is guaranteed by the insurance company. If you’re using life insurance as an investment, that means the rate of return on your policy is fairly predictable.

You can tap into a policy’s value while you’re alive. Even though whole life and universal life are both types of permanent life insurance, they differ in several ways, including costs, premium flexibility, cash value growth and the death benefit. Whole life insurance is a permanent life insurance policy that has a fixed premium and death benefit.

Indexed universal life insurance (IUL) is a type of permanent life insurance policy that will never expire. As long as you make your payments, your policy will remain active. IUL policies have a cash value account that earns interest based on a stock market index, such as the S&P 500.