An underwritten life insurance policy is a plan designed specifically for you. It uses the medical history of both you and your family to determine your premium rates. Although you can take out a life insurance policy that does not require medical records, the plan may cost more.
Significance
A life insurance company requires a medical exam and medical records as a way to determine whether you have any health conditions that may shorten your life. If the records and examination indicate that you have a medical condition, your policy's premiums are likely to increase. Medical exams and records are typically done by an independent paramedical service and not your doctor.
Features
During the required medical exam, a sample of your blood and urine are typically collected. The urine and blood are screened for different disorders. Many services test for HIV, autoimmune disorders, diabetes, hepatitis, liver disease and disorders of the kidney. If any of the results come back positive, your policy can be adjusted by the underwriter. Cholesterol levels are also examined and a drug screening is done. Besides blood and urine screening, a medical exam includes the paramedical professional recording your weight, height and blood pressure.
Considerations
Besides the records from your initial medical exam, your insurance company may require additional testing. For instance, some carriers ask for an EKG to be performed on applicants over a certain age. If the initial records show that you are chronically or terminally ill, your application for life insurance can be declined.
Effects
Both term life and whole life insurance plans ask for medical records. Term life insurance is coverage that gives death benefits to your dependents during a certain period of time. Whole life insurance is coverage that does not expire as long as premiums are paid on the policy.
Potential
Your medical records may cause an underwriter to adjust your premiums based on the information found in the file. For instance, if you have just undergone major surgery, you may pay a higher rate at first, which will be reduced as you recover.
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