Examining The Medical Exam
If you are purchasing life insurance for the first time, you are probably worried about your medical reason. Don’t worry; it’s just a routine examination, which allows the life insurance company to judge how much premium to charge a potential policyholder. If the company determines you are likely to die at an early age, they will want to collect more premiums early in your life. But if they feel you will live longer they would not need to collect as much from you in the early part of your life because you will be around longer to continue to make premium payments.
Life insurance companies use two factors to judge how long a potential policyholder will live:
- Longevity Charts — These are just statistics on the mortality rates of people. These charts give the insurance company a general idea of the ages at which men, women and children die. These figures help the insurance company assess its risk when taking you on as a policyholder.
- Your Medical exam and History is the second factor. Usually your medical exam is done in the privacy of your home or office.
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