Your medical information is private. You do not want to share it with others. But why does a life insurance company ask for it in the form of a medical exam?
In nearly all cases, individuals need to provide some testing and information about their medical history to these providers. It is how the insurers determine risk, coverage and costs. There are a few key things to remember about such requirements.
Your Information Remains Private
Life insurance companies have a legal rule to protect the privacy of your information. They take steps to ensure all HIPAA law compliance is in place.
This means that, aside from those who need to make decisions, no one knows your personal information. It will likely remain in a secure place within the insurance company, and only a few people will be able to access it.
Most often, any medical screening happens at home or in a doctor's office. In some cases, the insurer works with your existing doctors to gather this information as well.
Inaccurate Information Can Lead To Cancelation
If you are not accurate about your medical history or provide limited information, your insurer can cancel the policy.
Additionally, if you die and your insurance company learns you were not honest, it is not likely to pay out a death benefit. For this reason, it is always important to be thorough and honest.
No Medical Exam Questions Policies
Some companies offer life insurance policies that do not require medical exams. Some do not turn people down for their health factors. However, these policies tend to offer less coverage. They are often ideal for those who want to cover final expenses at the end of life. Yet, they have limitations.
Why Medical Information Is So Important
The goal of an insurance company is to find the right balance. Insurers provide you with coverage, but they also seek to minimize financial loss. If you obtain a policy as a very sick individual, the policy has little time to grow in value. And, that means the insurance company loses money on the policy.
It is all about finding a balance with the loss. Individuals who fail to provide medical information may simply not receive coverage.
If you are unsure if you should provide a medical exam, speak with your TCU Insurance agent. They may recommend a policy that does not require an exam. In addition, the agent may be able to help you find coverage, even if your medical exam shows some areas of concern or risk.