What is a paramedical exam?
If you have ever applied for a Life Insurance policy, then you may have heard of a paramedical (paramed) exam. A paramed exam is an exam done by a medical professional and is used to gather data about your medical history and current medical status. They may take measurements, like height, weight, blood pressure, and the exams usually include a blood draw and urine sample.
What is the paramed exam data used for?
Paramed exams are a common requirement for Life Insurance applications, depending on the “death benefit” being applied for through the policy. Life Insurance company underwriting guidelines, requirements, plans & products vary. While the application process can be more lengthy for some, it can be easier and more affordable for others.
Once the data has been gathered and the lab results are in, they are sent to an underwriting team to be used in conjunction with your Life Insurance application for coverage. Using all the data from your history, measurements, and lab results, the Life Insurance underwriting team determines whether they will approve (or deny) coverage and assign a “rating class.” This rating determines the premium you pay for the product for which you are applying.
How can it benefit me?
Some Life Insurance policies do not require a paramed exam or interview. These policies are often referred to as “simplified issue” or “non-medical” policies. In these cases, you may be asked a few medical questions, and the policy is issued if your answers deem you eligible for the product. These type of policies are excellent for buyers that are in good health…but may be overweight, don’t like needles, or just don’t want to deal with the hassle of the paramed exam.
However, because of the accelerated underwriting process and convenience of these kind of plans – these policies are often more expensive, as the Life Insurance company could potentially be taking on more risk.
If you opt for a more traditional product and subject to a paramed exam, you can potentially see a cost savings. It’s all up to you and the plan you want, the coverage you want, and your preference on the exam / application process.
Fortunately, our Life & Health team at Town & Country Insurance is familiar with both of these types, and we are happy to help you with either! Feel free to complete the info request below, and I can work with you to find an option that best fits your needs.
Submitted by Jeni Olander, LUTCF, Life & Health Department at Town & Country Insurance