No Medical Exam Disability Insurance

Yes, you have read that correctly, we work with many carriers that offer disability insurance without taking a medical exam. This can often times speed up the application process and remove some of the underwriting barriers in order to get you coverage.

What does “no medical exams” mean exactly? Does this mean there is no underwriting? No. Most individual policies are still fully underwritten, they are just underwritten differently.  Most of the time the insurance will still check the prescription data base. ExamOne and Milliman IntelliScript collect prescription data from pharmacy benefit companies and sell reports to the insurance companies. Those reports are available within seconds, including the drug name, dosage, fill date, pharmacy and physician information. The prescription histories sold don’t date back more than about 10 years on average.

“No medical exam disability insurance? NO WAY!”

Secondly, the insurer will collect your Medical Information Bureau report (MIB) https://en.wikipedia.org/wiki/MIB_Group which is almost like a credit report but for your past insurance underwriting records. MIB does not collect, maintain or store medical records such as attending physician statements (APS) or lab test results, but instead collect information from their members who report previous underwriting results in the form of “MIB Codes” that can include medical and driving histories, or hazardous avocations, better known as hobbies such as sky diving and rock climbing.

Why is not having a medical exam beneficial for you when they still collect all of this other information? BECAUSE IT IS! Insurance companies that need to collect a blood and/or urine supplement are looking for various red flags when it comes to disability insurance. These could be blood in the urine, checking your protein levels for an imbalance, cholesterol levels, looking for elevated liver enzymes, or the presence of drugs such as nicotine or cocaine. By removing the medical exam as an underwriting requirement, it removes one variable that could have an adverse effect on your underwriting outcome. Any insurance broker that has been in the business long enough has had a medical exam cause a client to be declined that was otherwise thought to be perfectly healthy because of one of the above reasons.

What is the catch? Well first of all, the carriers all have age and amount stipulations; in general, anyone over the age of 45 can expect to have a medical exam completed. This is because the older we are, the more likely we are to become too sick or hurt to work so the insurer will want to get a more complete picture of the older applicants.  The insurance carrier will also look at total amount at risk; the more coverage you currently have in force or that you are applying for; the more likely it will be that you will need a medical exam.

At Policy Wizards, we have access to all of the major carriers and their no-exam disability underwriting programs and we work for you to reduce any barriers to insuring your income and make this process as easy as possible. However; that being said, if you need a certain amount of coverage to protect your income we always recommend to go through full underwriting; reducing your benefit amount in order to gain advantageous underwriting treatment is never recommended as this may leave a gap in the amount of coverage you and your family need should you lose your ability to work.

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