Why do some life insurance companies require a medical exam, and others do not, for the same coverage?

Question

Okay, my wife and I are looking at life insurance policies. We have decided on getting $100K for me and $25K for her. (We are both in our thirties, and work full-time.)

The two life insurance companies we have narrowed this down to have both been in business for over a century, and are well-known insurers. The policies are identical, and the premiums are almost identical. (Only a few pennies difference per month.) The main difference between the two policies is that one requires a medical exam, and the other company does not. If I had wanted over $150K, the second company would have required one as well, if that helps any on this question.

So, on to the question! Does one companies requirement of a medical exam make them any more or less reliable than the other company? I don't care about the exam, and I'll take one gladly as long as the company pays for it, I just don't understand why one company requires one and the other does not.

Any opinions or ideas?

Answer 1

The purpose of the medical exam is to verify that you are currently health.  That way you'll be paying in a premium for several years to come.  Some companies are willing to take the risk up front that you are currently healthy, rather than go to the expense of a physical.  I'm sure that they have accumulated enough data of the course of several years to be able to set their risk level with confidence.

Answer 2

Different companies have different underwriting protocols.  Its that simple.

Answer 3

Underwriting protocols differ between major insurers.

Answer 4

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Answer 5

Off-topic, but I think your avatar is cool!