insurance

6 myths about buying life insurance

Insurance » Life Insurance »

No. 4: Medical underwriting is just a formality
No. 4: Medical underwriting is just a formality © Shipov Oleg/Shutterstock.com

No. 4: Medical underwriting is just a formality

Yes, life insurers like to downplay the medical exam, and for good reason: They don't want you to know how seriously they take your health.

"If you're buying a million-dollar policy, you're going to go through a full medical exam by a doctor of the insurer's choice," Hasenauer says.

This information is collected by MIB Group, an insurance industry trade group, and insurers use it to assess your risk. "As we go down the scale to smaller and smaller policies, we get policies that are written with questionnaires only and then they go to the MIB and get additional information there," she says.

If you've ever applied for any insurance as a smoker, or if you use any nicotine products including a patch, you'll likely wind up in the smoker pool, even when you qualify for Medicare. Heck, some cancer survivors have a better chance of favorable rates than smokers do.

"There's a reason for it: It's costly!" Hasenauer says.

Don't try to hide it. "That's a misrepresentation that could put your insurance policy in jeopardy," she says.

advertisement

Show Bankrate's community sharing policy
          Connect with us

Compare multiple quotes in just 6 minutes

Get competing rates from top companies including:
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jay MacDonald

Will employers treat moms better?

The battle for top talent leads U.S. corporations to expand maternity benefits for new parents.  ... Read more

advertisement
Partner Center
advertisement

Connect with us