Everything you need to know about medical questions and the exam.

To buy life insurance, you must submit an application and receive approval. It is common to be asked to complete paperwork, undergo a medical exam, and provide health information about yourself and your immediate family. Your premiums are generally lower the less risk you pose to the insurer.

Understanding the life insurance application process can help you obtain the protection you need at a price you can afford. Read on to learn about the process of buying life insurance, from application through underwriting and the final decision.

Determining your life insurance coverage needs

Permanent life insurance, which offers coverage for the rest of your life, and term life insurance, which provides only temporary coverage, are the two main types of life insurance.

Working with a local insurance agent can help you better understand your options.

After deciding to buy life insurance, you must choose your coverage amount. Consider how much your loved ones would need after your death, how much you already have available through personal assets or group term insurance, such as an employer-provided plan, and how much you can afford in premiums.

The amount of life insurance coverage you need depends on several variables, such as your dependents' ages, your spouse's earning potential, any outstanding debts, and your family's total financial resources.

Medical questions on the life insurance application

Begin by submitting a life insurance application directly through a broker, agent, or insurance provider. You will be asked for basic details such as your name, address, occupation, and employer. The application also typically requests the following personal information:

• Height.
• Weight.
• Date of birth.
• Lifestyle habits, such as whether you smoke, drink, or exercise.
• Your immediate family's medical history.
• Current medications.
• Financial details, such as net worth and annual income.
• Risky hobbies such as skydiving or rock climbing.
• Criminal convictions, particularly driving-related offenses.

Despite the temptation to conceal your weight—perhaps your age?—or other health issues, being open and honest is important.

Your application may be rejected if the insurer discovers that you have been inaccurate about a health condition or lifestyle factor. If a misrepresentation is discovered after the policy is issued, the insurance provider may increase your premiums, cancel your coverage, or deny a beneficiary's death benefit claim.

Some insurance providers ask only for your medical history and current medications or surgeries when you complete an application. These no-exam life insurance policies, such as guaranteed issue and simplified issue life insurance, are usually more expensive and have lower face amounts than policies requiring a medical exam.

The life insurance medical exam

In general, most insurers and policies require the insured person to undergo an in-person medical exam. Your life insurance agent will arrange for a paramedical examiner—a licensed health care professional hired by the insurance company—to meet you at your home, office, or a clinic selected by the insurer.

During the exam, the examiner will likely:

• Ask about your immediate family's medical history
• Record your medical history, including conditions, surgeries, and prescription medications
• Take your blood pressure
• Listen to your heartbeat
• Check your height and weight
• Draw a blood sample
• Obtain a urine sample
• Ask about lifestyle habits that could affect your health, such as exercise, smoking, drinking, recreational drug use, frequent travel, and high-risk hobbies

Depending on your age, the type of policy you want, and the amount of coverage requested, additional tests may be necessary, including an electrocardiogram, chest X-ray, or treadmill test.

After testing, an insurance company underwriter will review your application and medical exam results. They may request health records from your doctor to learn more about any medical conditions and treatments you have received. This information helps determine the financial risk you pose to the company and how much it charges for coverage.

Once your application and medical exam have been reviewed, the company will approve or deny your request to purchase coverage. This process may take days or weeks, depending on whether you submitted a complete application, how long laboratory results take, whether the company requests information from your doctor, and other factors.

If you do not provide truthful information about a medical condition, the insurer may not only deny coverage but also "red-flag" you. This means other insurers will know you were denied coverage because you submitted false information.

If your coverage is denied

If you "fail" the medical exam and the insurer refuses to cover you, or offers coverage at a higher rate because of your results, you have several options.

Ask why you were denied to better understand the available options. You can ask your insurance broker whether a company works with your medical condition, or you can apply for a no-exam policy.

If you are offered a policy but are unhappy with the rate, you can purchase it for now and request a reassessment later, improving your health or lifestyle risks in the meantime.
Of course, you can check with more than one insurance company to find the best possible life insurance policy for your circumstances. Finally, you may obtain group term life insurance through your employer, which often does not require a medical exam.

Ways to reduce your life insurance premium

Although you cannot change some of the major factors affecting your insurance premium—age, gender, and family medical history—you can take steps regarding lifestyle factors. You could lower your premium if you:

• Quit smoking. As a nonsmoker, you are likely to live longer. This potentially gives the life insurance company more years to collect premium payments and less time until it pays the policy when you die, so it could lower your rate.
• Lose weight. Weight loss often leads to lower cholesterol, lower blood pressure, and a reduced risk of developing chronic diseases such as diabetes. These health improvements make you a better insurance risk.
• Reduce or eliminate alcohol consumption. Drinking can pose a potential health risk. Life insurance companies review your application, driving record, and medical exam to assess your drinking habits. Drinking less or stopping entirely makes you a lower risk for the company, so you will likely be rewarded with a lower premium.
• Improve your driving. Insurance companies may increase your premium if you have multiple traffic violations.

Other ways to reduce your premium that do not involve lifestyle changes include:

• Use term life insurance instead of permanent life insurance. Depending on your age and how long you expect to need coverage, you may consider a term policy rather than permanent life insurance.
• Change insurers. If you think your current policy is overpriced, you may be able to obtain similar or better coverage for less from another company. However, do not cancel your existing policy until you are certain you have qualified for the new one.
• Remove riders. Riders are optional policy provisions that provide additional benefits for you or your beneficiaries. However, these extra benefits increase your premium. Consider whether there are riders you could do without. Types of riders include:
• Accidental death benefit rider: Pays your beneficiaries if your death resulted from an accident
• Spouse and child term life insurance riders: Pay if a spouse or child covered by your life insurance policy dies
• Waiver of premium rider: Pays your policy premium if you become permanently and totally disabled
• Guaranteed insurability: Provides an option to purchase additional coverage in the future without evidence of insurability, such as a new medical exam
• Accelerated benefits rider: Pays part of your death benefit in advance or your premium if you are diagnosed with a terminal illness or need long-term care or nursing home services
• Payor rider: Waives premiums if you die or become disabled before a covered dependent child reaches a specified age
• Look for "no-load" or "low-load" policies. These policies are often less expensive because they pay insurance agents no sales commission or only a low commission.
• Ask about payment discounts. You should receive a discount for paying your entire bill annually rather than monthly or quarterly. You could also receive a "bundling" discount if you buy life insurance from the same company as your auto and homeowners insurance.
• Review your credit report for accuracy. Insurance companies may review your credit report when determining your premium. Paying bills on time, as reflected in your report, reassures the company that you are likely to pay your premium on time and in full. Although your credit report does not determine eligibility, insurers look here for factors affecting premium rates, such as bankruptcy and DUI convictions.
• Choose a company experienced in covering people with your condition. If you have a medical condition, a broker can help find a company likely to work with you and potentially offer a better rate.
• Review your Medical Information Bureau file. Insurers share information about applicants' medical conditions through the Medical Information Bureau (MIB). Request a free copy of your file from the MIB website and review it; incorrect information could negatively affect your premium.