Life insurance companies test for health risks like blood pressure, cholesterol, blood sugar, liver/kidney function, HIV, nicotine/drug use, and family history via questionnaires and blood/urine samples to assess mortality risk and set premiums, often including BMI, EKG, and cognitive tests for older applicants or higher coverage.
The physical exam: The examiner takes your height, weight, pulse, and blood pressure. They may also take your blood and urine samples to determine levels of cholesterol and blood sugar. Applicants over 50 applying for a higher level of coverage, such as $1 million, may need to take an electrocardiogram (EKG).
Disqualifying conditions for life insurance are severe medical issues (like late-stage cancers, advanced heart/organ failure, or serious neurological diseases), high-risk lifestyle choices (dangerous jobs/hobbies, substance abuse, DUIs, smoking), significant family health history, or application issues (fraud, misrepresentation, high debt) that make an applicant too risky for standard coverage, though guaranteed issue policies offer limited options for high-risk individuals.
What do life insurance companies test for?
To test for these issues, a typical medical exam for life insurance may include a blood and urine sample, your height and weight, blood pressure, and pulse rate.
Policy Denial
If an insurance company discovers that you've lied on your application, they may deny your coverage altogether. This means that in the event of an accident or claim, you would be left without insurance and responsible for any damages out of pocket. This could have devastating financial implications.
Nevertheless, the passing score for all exams is 70%, and utilizing exam study tools can help you gauge whether or not you are on target to pass on the first try. The average exam-taker should expect to spend about 35 to 40 hours studying to pass the life and health insurance exam.
They can include engaging in risky hobbies and behaviors like skydiving; having a history of DUIs or speeding tickets; having a dangerous job like roofing; having a criminal record or a less than ideal financial history; being a smoker; and failing a drug test.
Common reasons for a denial and examples of appeal letters
Enroll in an exam prep course. Map out a study plan. Test your knowledge with practice quizzes (but don't overly rely on them).
What STDs do life insurance test for? Life insurance companies may or may not test for a range of STDs. We have never personally come across that in our office. However, there is an HIV consent form that you must sign, so they definitely test for HIV/AIDs.
How long are medical records kept? The answer varies depending on the state. In California, the retention period can be anywhere from two to ten years, depending on the type of procedure or healthcare provider. However, an insurance claim medical report should only look as far back as the injury in question.
Disqualifying conditions for life insurance are severe medical issues (like late-stage cancers, advanced heart/organ failure, or serious neurological diseases), high-risk lifestyle choices (dangerous jobs/hobbies, substance abuse, DUIs, smoking), significant family health history, or application issues (fraud, misrepresentation, high debt) that make an applicant too risky for standard coverage, though guaranteed issue policies offer limited options for high-risk individuals.
The "life insurance 7 year rule," or 7-Pay Test, is an IRS test for permanent life insurance (like Whole or Universal Life) to prevent overfunding; if you pay more than the maximum premium needed to fully fund the policy in seven years, it becomes a Modified Endowment Contract (MEC). MECs lose some tax benefits, making withdrawals and loans taxable as income (earnings first) and potentially subject to penalties, though they still provide a tax-free death benefit. The test resets if you make significant changes (like increasing the death benefit) to the policy, starting a new seven-year period.
Disqualifying conditions for life insurance are severe medical issues (like late-stage cancers, advanced heart/organ failure, or serious neurological diseases), high-risk lifestyle choices (dangerous jobs/hobbies, substance abuse, DUIs, smoking), significant family health history, or application issues (fraud, misrepresentation, high debt) that make an applicant too risky for standard coverage, though guaranteed issue policies offer limited options for high-risk individuals.
About 60-65% of people pass the life insurance exam on their first try, with national statistics showing rates around 62-63%, though it varies by state and specific exam (Life vs. Life & Health), with some jurisdictions seeing higher or lower figures, indicating focused study is crucial for success.
Top 10 Toughest Exams in the United States
Fraudulent misrepresentation
This means intentionally and knowingly making a false statement that misleads an insurance company into entering a contract under false pretenses. Since the person intended to deceive, the consequences of lying can be severe — and be treated as a felony.