No medical exam for a life insurance policy
September 5th, 2010
With recognition of becoming booming industry life insurance has been made easier for people to let them insured. Term policies have no cash value but people still buy them because they offer better life coverage and death value proves timely support for beneficiaries when breadwinner dies premature. But is term insurance so flexible to fit into bill for every insurance buyer. Definitely it is not and some rules prevent many to buy these policies. Introduction of life insurance no exam policies is an alternate and easy option for people not fulfilling eligibility criteria.
There is not just one factor that is associated to the above mentioned option of insurance. This special category of insurance has its own terms and conditions and it is important for the people fulfilling the eligibility criteria to understand all the aspects so that they can enjoy having these services and may buy life insurance no exam policies. What adds on to the benefits of life insurance no exam policy is the easy underwriting process that makes it more flexible for the insurer to get insured. Escaping the medical test assures that one can skip the medical information bureau (MIB) record as well.
You can avail life insurance no exam policy merely by answering few simple questions. The absence of medical exam simplifies the process and the applications are forwarded without any hassle. One the insurance application for life insurance no exam policy is received by the insurance company it is sent to the MIB, this is the procedure to bring it to the notice of the MIB that a no medical examination policy is being issued in this case and few health related questions have been asked, after doing so the case gets processed for underwriting. This facility is limited as it is not given in the policies availed on cheap rates like those people going for medical examinations to buy insurance.
The reason why the exam policies remain costlier unlike normal term policies has been stated in the previous paragraphs. Such insurance options are an initiative taken by the insurance companies to sell term policies by convincing the corporate houses or organizations to buy these policies in bulk. This case is common in the employer group life insurance options. Creating awareness among the workers is the main motive of employer’s group life insurance plan. They are advised and compulsorily told to buy insurance as a matter of policy.
When such cases are before you insurance companies deliberately skip medical examinations and offer life insurance no exam option to make insurance buying easy and affordable. Even though rates of such policies go higher but people buy them because premiums are submitted in bulk. In many cases some discounts are also offered. Policies sold in employer group plan are deliberately made easy. Applying for life insurance is only qualification required in group insurance hence life insurance no exam is considered suitable in these cases. People get their insurance document in couple of weeks as underwriting is made easier.
Individuals hardly bother about costs involved in such cases because they understand that they haven’t been involved in unnecessary paper work and their time is saved when they are not asked to undergo medical examinations. But a life insurance no exam policy bought under group insurance has one disadvantage. Such insurance policies would expire automatically once employment is terminated and policyholder leaves that organization. But policyholder will definitely enjoy getting sufficient life cover until he is associated with organization that arranged life insurance no exam policy for him.
It is true that even the life insurance no exam policies have some demerits, but the reason why people prefer it is because they run out of time and can’t personally visit medical examiner for health checkup to buy a policy and get insured. In the hectic professional schedule one finds it difficult to take out some time. This is the reason why they are also ready to shell out some extra amount for this facility, because in this hectic scenario when you are presented a policy without medical examination then it is obvious that nobody would want to deny it. What adds on to the advantages of this policy is the simplified underwriting process which has made policy buying very easy for the buyer and one can get insured without undergoing intensive medical examination.
Last but not the least life insurance no exam is also offered to people suffering from some illness but still wants a life cover. Insurance companies may deny offering insurance to some people if illness is critical. People with treatable diseases may avail option of getting those insured through life insurance no exam policies. Nevertheless, applicants still need to be in good health to get a no exam life insurance policy. The crux of the matter is that life insurance no exam too follows certain rules and regulations and process of approving application is possible only in those cases when health of policy buyer has not deteriorated. For all those people who are suffering from some illness and have been rejected by the insurance company, life insurance no exam is the right thing for you, so not be dishearten because even you are eligible for life coverage. At times the insurance companies may deny insurance to some people who are suffering from critical illness but still all these people can avail the benefit of life coverage by opting for life insurance no exam policies. Nevertheless, applicants still need to be in good health to get a no exam life insurance policy. These policies have their own set of rules and regulations based upon which they function, the application is accepted only in those cases when health of policy buyer has not deteriorated and only these people can avail the policy and the benefits
For more great write-ups by David L. on life insurance rates , click to find out.