Before we get into how to take a medical exam, some definitions and updates are important. The first one is the actual definition of 'medical exam'.
So in years past, pretty much every life insurance policy required an actual 'medical exam' consisting of two components — paramed (a health questionnaire, done in person) and vitals (physical measurements that included a blood and urine sample). The only other common alternative was guaranteed issue policies — coverages that required no information but were expensive and only for small amounts. Between covid preventing in person visits, and continued competition in the life insurance industry, that is no longer our choices — they're more robust.
First, the two general types of underwriting/information policies these days are either fully underwritten, or simplified issue. (On a slight tangent, with AI and data analytics, the lines between even those two are being blurred).
Simplified issue policies are policies that have 20 or 30 predefined questions that you answer yes/no to. If you're able to answer the questions all 'no', then you qualify for the coverage. If you answer a question 'yes', then you don't qualify for the coverage. However we know upfront what the questions are, so we can predetermine whether or not you qualify before you even apply. And here at The Term Guy, we actually have an AI that's been pre-populated with the different companies' simplified issue questions so it's very easy for us to tell what policies you would qualify for. Anyway — simplified issue policies these days would be the natural outgrowth of 'no medical exam policies' even though they aren't guaranteed issue, there's no actual individual underwriting.
Medically underwritten policies
These are the policies that most Canadians would consider as having a 'medical exam'. As I mentioned above though, with covid, things have changed. Recall a typical policy used to have an in-person paramedical exam which consisted of an in person health questionnaire, followed by vitals which included blood and urine.
Today, the vitals part is often not required. A variety of carriers will provide coverage up to 1MM and sometimes as high as 2MM without any vitals — no blood or urine, or in person physical measurements. So that part of the 'medical exam' for many of us, is no longer. (Note, companies that don't require vitals by default always have a caveat that says they will random sample applicants — and they do. If you apply, there's a small chance you may still be required to do vitals; either because you were randomly selected, or because other information suggests the company may want those numbers. So, skipping vitals is common, but not guaranteed).
The actual medical exam
So that just leaves a health questionnaire as the 'medical exam'. That's hopefully not that intimidating. It's 20-30 questions completed either by a medical person contracted by the life insurance company, or increasingly commonly, asked by your life insurance advisor when they do your application. That's it — for many of us, the 'medical exam' is just sitting with your advisor, completing an application, and answering a couple dozen questions.
The questions are collected into a few general categories. There's some questions on your occupation, income and assets. There is a family health history question. There's a number of lifestyle questions (travel, hobbies, alcohol, etc), and then there's the health questions.
How do I answer the medical questions?
So, how do you take the medical exam? For most people, you just answer those 20 or 30 questions with your advisor — it's no more difficult than that!
BUT
There's a huge caveat here — a big warning. When you answer those questions, it's vital that you answer them verbosely, in exceptional detail. Don't leave anything out no matter how small. Answer the questions like you're a lawyer (or as best you can).
There's no reason to be concerned, no cause for anxiety and no need to do homework before answering these questions. You just need to be VERY careful not to just buzz through the questions saying 'nope, nope, nope, nope'. Stop. Listen to the questions carefully. Answer them completely. Give details. Leave nothing out. Avoid the tendency to rush through them, or the tendency to think that a positive answer is bad — it's not. It's data, not a judgement.
Why the need for care?
So why am I belabouring the point about taking your time with these questions? There's two important reasons.
First, when you apply, if you have any medical concerns, the underwriters give us better answers if they have more information fed to them. They don't like interpolating, or having to fill in information — they'll always assume worst case. So give them the actual information which is likely better for you than worst case.
An example. Clients were rated because of rock climbing — an extra premium. We provided detailed information, because the clients were actually scrambling. We provided information on routes, terrain, elevation, etc. The underwriter reviewed, determined the activity did not meet their guidelines for rock climbing, and removed the rating. More info = cheaper premiums.
Secondly and perhaps more importantly, is when a claim is made. In Canada, there are only two ways a life insurance company can deny a claim. The first is suicide in the first two years. The second is centered around the application questions. It's called contestability, but to paraphrase what it means, is this. If you pass away and the insurance company does an investigation and finds information that they asked about, that you did not disclose, they can potentially deny the claim. It doesn't matter if you thought the information was minimal. It doesn't matter
- whether or not you were trying to hide information
- whether or not it was related to how you died
- whether or not you thought the information was minor
You failed to answer fully about a question, it can potentially lead to a denial. However — if you've answered every questions exhaustively, and it wasn't suicide, then the company will pay your claim. So, taking your time with the questions just guarantees that your claim will be paid — it's security for you.
What if you answer yes to a question?
If you have to answer yes to a question, don't panic. At this point it's just data. That data is going to be evaluated by the life insurance company to determine if it impacts your mortality. As I am prone to saying — everybody has something going on, and people still get life insurance. Don't be concerned just because you've provided a 'yes+details' to a question. In the majority of cases, it won't impact the end result, and if it does, often your advisor can flag these things upfront. Here's a good example — diabetes. Years ago diabetes was a problem for life insurance. These days it's common for people with diabetes to get standard premiums. Heck, it's possible in some cases these days for people who've had cancer to get standard premiums. And answering questions about your family health history rarely impacts your premiums. So, give them info, and in general, don't be concerned.
In summary — these days the medical exam for most people is just a questionnaire done by your advisor when you apply, consisting of 20-30 questions and all you need to do is take your time with them. Don't rush them and give them full details. It's that easy!