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Understanding the Life Insurance Application Process

We have often found that some of you are quite daunted by the prospect of completing an application for Life Insurance.

This is usually caused by a fear that extensive medical testing, such as blood tests, resting ECG and medical reporting, will be required during the application process. In reality, only about 30% of applicants need to undergo limited medical testing (usually in the form of blood tests).

Why are medical tests required by Insurance Companies?

When an Insurance Company assesses an application for Life Cover it must determine whether the standard life rate applies. While the major determinant of this is based on the applicant's pre-existing medical conditions, other factors are also taken into account. Factors like your height to weight ratio, age, occupation and gender, as well as sporting and other pastimes are considered, particularly those that present higher risk levels like aviation, sky diving etc.

We want to increase your awareness of what tests may be required, and what they mean to hopefully reduce the "fear factor"! Some of the common tests that may be requested are:

Height and weight ratio
Chest expiration
Pulse rate
Heart sounds
Blood pressure
Urine testing
Vision, hearing and speech

Depending on your circumstances additional tests may also be requested, such as:

A Personal Medical Attendant's Report (PMR). This is a popular piece of documentation that is often requested, and involves writing to the applicant's Doctor and asking for particular further clarification of medical conditions.
Electrocardiogram (ECG). This test measures electrical conductivity of the heart and indicates if there are irregularities. There are two forms of ECG: the resting ECG and the stress ECG. The latter being the more revealing test.
Spirometry. This examines any issues related to lung function.
General pathology testing, also known as an MBA20. This is a blood test that measures such things as:
- Levels of sodium, potassium, uric acid, glucose, cholesterol, calcium and protein. Very high or low level results may indicate certain health concerns such as diabetes, hepatitis and liver disease.
- Iron levels, which can indicate kidney or liver problems.
- HIV antibody.
- Hepatitis B and C.

Remember, up to 30% of applicants only need a limited form of testing. So don't let the fear of having to undergo rigorous medical testing stop you from protecting your family's future! Our insurance specialist, Peter Dale, can tell you more and help you through the process of applying for all of your personal insurances.

Contact our Insurance Specialist Peter Dale for more information today!

Australian Financial Services Licence No. 241177

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