It is very common for a life insurance company to require that an applicant complete and pass a medical examination before they approve insurance or offer a quote for the insurance. If you have never applied for life insurance and do not understand why this is a requirement, here are three things you should know.

It is not required by all companies

A medical exam, when required by a life insurance company, will usually involve a basic examination by a doctor. It will require taking your vital signs, looking up your medical history, and possibly taking blood work. It is important to know that this type of exam is not a requirement by all companies that offer life insurance. You should realize, though, that to get a large policy, you will likely have to go through the exam. If it is required, you will have to use a clinic or doctor approved by the company, and you will have to submit the report to the insurance company before they will give you a solid quote for coverage.

A health exam tells the company your health status

The reason that most life insurance companies require medical exams is so that they can find out your health status. When a life insurance company offers a policy, they may end up having to pay out a large amount when a person dies, and if the person was already sick and about to die, this could be devastating to the insurance company. To compensate for their risks, they will look carefully into a person's health to find out what risk level the person is to them. If you are too much of a risk, the insurance company may charge you really high rates or deny offering you a policy.

The exam protects you

Lying about your health status can result in losing the right to claim money, but going through the exam and being honest will actually protect you. If you are completely healthy right now and you pass the exam, the insurance company could not deny paying the proceeds from your policy if you suddenly became ill and died. Therefore, going through a medical exam actually offers you protection over events like this.

Having the right type and amount of life insurance coverage can protect your family members after you pass away, and this is especially important for families with young kids. If you would like more information about the options you have, contact a life insurance agent today.