Medical Tests and Life Insurance

Most life insurance companies, offering traditional life insurance products require a series of tests before a decision is taken. The medicals done, along with other underwriting considerations, help the insurance decide whether they should approve or decline the applicant or should they rate ( preferred or substandard) the client. This is creating more and more concerns in the minds of people applying for life insurance.

It is also noticed that with increased fac amounts, number of medical tests are also increasing. There are more tests even when the age of the applicant has increased.

In a fast paced lifestyle, people could find arranging time for tests etc etc a time consuming and an overwhelming experience. Hence there is an increased attention given to insurance plans and companies requiring lesser medical tests and hence shorter underwriting times. One finds non-medical plans and plans not requiring and  blood and urinalysis related tests becoming popular with a certain set of applicants.

Insurance companies may also attempt to acertain a client’s risk by obtaining an Attending Physician Statement from the family doctor and/or a specialist. This does not require any work on the client’s part. The insurance company pays the doctor directly to complete the documentation. Once the insurance company collects this information they forward it to an underwriter to make the decision.

Despite the obvious convenience of avoiding this extra step, two important reasons remain for submitting to a medical test:

  1. Many insurance companies  offer preferred  and elite rates rates to individuals who are in good health and possess a favourable family health history. An insurance company can only make this  assessment if they obtain the necessary medical information. The discounts      can be substantial — as much as 30% in some instances, which can conversely, translate into savings of thousands of dollars.
  2. Front-end underwriting is a better way to acquire life insurance. It smoothens the claim process and makes the payments easy. To provide the insurance  companies with all the necessary underwriting information up front shortens claim processing periods. Most creditor insurance applications for the likes of mortgages or lines of credit do not require medical tests. The fact that insurance companies have limited initial client information necessitates that they perform their underwriting at the time  the claim is filed. Simply put, when your family needs the money most the  insurance company is otherwise occupied finding out if you were as healthy      as indicated on your initial application.

Taking a medical examination in concurrence with your life insurance application is an inconvenience worth enduring. It’s the difference between adequately protecting your family and thouroughly protecting them.

  As established insurance brokers, we could help you with detailed understanding of the several insurance products from all major insurance companies in Canada. Please free to contact me at or at 1 416 509 2540. Please visit me for a no obligation quote or advice.


Prepared by:  Aman Kapur

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