A Life Insurance Medical Exam Could Save You Money—and It Might Be Easier Than You Think
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Why a medical exam can save you money on life insurance
Life insurance companies use medical exams to determine how risky it is to insure someone. Since life insurance costs are based on how likely the policyholder is to die during the term, insurers need a clear and accurate picture of each applicant’s overall health and life expectancy when setting coverage and rates.
The more your insurance company knows about your risk of death, the more accurately they can price your life insurance policy.
For most Canadians, that means lower premiums. Life insurance policies that don’t require a medical exam, such as simplified or guaranteed acceptance policies, are typically based on an assumed high level of risk and are significantly more expensive than fully underwritten policies.
What a life insurance medical exam includes (and why it matters for pricing)
The basic components of a life insurance medical exam include health questions, vitals, and blood and urine tests.
Here’s how it works:
- Scheduling: If you need a medical exam, your insurance company will put you in contact with a third-party medical examiner (usually a nurse) to schedule an exam.
- Location: The nurse may be able to come to your home, or you may choose to undergo your exam in a clinic.
- Timing: Most medical exams for life insurance take between 30 and 60 minutes, depending on the number of tests being performed.
- Testing: The examiner will meet you at the pre-arranged location and perform basic tests with your consent to evaluate your overall health, usually with a focus on cardiac, liver, and kidney function.
If you’re selected to undergo a medical exam after answering health questions online, it’s likely because you have a pre-existing condition or a significant family history of a certain medical issue. In these cases, the medical exam serves to measure how well-managed your condition is or how high your risk of developing a health issue may be.
The table below breaks down the individual components that may be included in your life insurance medical exam.
Let’s say you have Type 2 Diabetes that’s well managed by diet, exercise, and medication under a physician’s supervision. If you answer “yes” when asked if you have diabetes on your life insurance application, you’ll instantly be sorted into the category of “diabetic applicants.” But diabetes is a complex disease that can look different from person to person: while one person with diabetes might be at a high risk of premature death, others can manage their condition well and enjoy a life expectancy comparable to their non-diabetic peers.
Blood testing tells your insurance company where you fall along that spectrum. Rather than blindly pricing your policy based on their worst fears of what diabetes could mean for your life expectancy, they can analyze your blood glucose and A1C to determine how serious your risk of premature death from diabetes actually is.
How to prepare
To prepare for your life insurance medical exam, be sure to:
- Ask beforehand about any preparation requirements such as fasting.
- Get a good night’s sleep the night before
- Drink plenty of water on the day of the exam
- Avoid intense exercise, alcohol, and smoking prior to your exam
- Have all of your medication information ready, including both prescription and over-the-counter medications you take regularly
- Be prepared to share details of any health conditions, including diagnosis dates and treatment outcomes
- Be ready to provide contact information for any physicians you see
Beyond the medical exam: Other paperwork
In many cases, the medical exam is just one part of the medical underwriting process. Don’t be surprised if, in addition to undergoing medical tests, you’re asked to provide the following:
- Attending physician statement (APS): Your physician may be asked to provide a written statement detailing your health history and any conditions they’ve treated you for.
- Motor vehicle report: Motor vehicle crashes are a leading cause of accidental and premature death. Your motor vehicle report can show whether you have any unsafe driving habits that could lead to a higher risk of death via motor vehicle.
How much can you save by getting a medical exam?
The exact amount you could save by getting a medical exam for life insurance varies depending on your health conditions, lifestyle factors, and coverage details, as well as the insurance company underwriting your policy.
As a general reference point, let’s compare average premiums for one high-risk applicant group—smokers—with the average premiums assigned to healthy non-smokers under full underwriting.
For $500,000 in term coverage, a woman aged 30-44 pays around $30/month, on average, if she’s proven to be in good health and doesn’t smoke. But for the same coverage, a woman in the same age group who smokes could pay an average of $75–$80/month.
That’s a differential of about $45–$50 per month. Of course, different health conditions come with different pricing, and not everyone will save this much by undergoing a medical exam. If you’re dealing with serious medical concerns (think kidney failure or ongoing cancer treatment), you may be denied coverage altogether.
If you undergo a medical exam for life insurance underwriting and the rates you’re quoted are still too high, you can decline the coverage and look for a policy with simplified underwriting or guaranteed issue. In that sense, a life insurance medical exam is a low-risk way to determine whether full underwriting is the most cost-effective option for you.
When skipping the medical exam can cost you
Even if you’re concerned that you won’t “pass” your life insurance medical exam or that your rates will be too high, it’s worth it to get a medical exam instead of going straight to no-medical or guaranteed acceptance life insurance.
Why? The less information an insurer has about your health, the more you’ll pay. When insurance companies aren’t sure how risky you are, they assume the worst and charge higher premiums.
Unless you’ve already been denied life insurance coverage or are in an extremely high-risk group, you’re likely to find better prices through a full underwriting process with a medical exam. Even people with pre-existing conditions can often save a lot of money if their condition is well managed and they don’t skip the exam.
Think of no-medical life insurance as a last resort if you’re unable to qualify for or afford any other type of policy. While the lack of an exam may be convenient, these policies are typically very expensive.
When a medical exam isn’t necessary
If you’re in good health, you probably don’t need a medical exam. Many life insurance companies, including PolicyMe, offer instant approval for applicants who pass an initial health questionnaire with no red flags. If you can honestly attest to having no chronic conditions or history of adverse health issues, you’re likely eligible for the lowest rates without having to undergo a medical exam.
One in four Canadians (26%) say that medical exams make them less likely to purchase life insurance, but over 60% of PolicyMe applicants are instantly approved without a medical exam.
How modern providers (like PolicyMe) reduce the need for exams
Life insurance underwriting has become more efficient thanks to AI technology and machine learning. Digital-first insurance distributors like PolicyMe use advanced technology and carefully designed questionnaires to accurately assess health risks, including both major and minor health conditions.
The result? Many Canadians can skip the medical exam altogether.
In fact, about 60% of applicants under the age of 50 get instant approval when they apply for life insurance coverage with PolicyMe—no medical exam or blood tests required.
FAQ: How life insurance medical exams save money
Helene Fleischer is Content Marketing Manager at PolicyMe, with 9 years in content marketing and 4 in Canada’s insurance industry. She works with skilled writers and licensed insurance advisors to create useful resources that help Canadians navigate insurance decisions with confidence and clarity.
Helene Fleischer is Content Marketing Manager at PolicyMe, with 9 years in content marketing and 4 in Canada’s insurance industry. She works with skilled writers and licensed insurance advisors to create useful resources that help Canadians navigate insurance decisions with confidence and clarity.