When you apply for an insurance policy, the life insurance company has to go through the process called underwriting. In this process, a trained professional will review your personal, family and medical history. This review will determine if you will qualify for their life insurance. This will also determine how low will be the insurance rate that you need to pay. They’ll run physical examination to determine your health status and see if you have any factors that may lead to health problems in the future.
What if you don’t pass the exam? Does it mean you cannot quality for the insurance? The good news is that there are life insurance companies that offer products without the physical underwriting steps. These products are also known as the no-exam life insurance, no physical exam life insurance and no medical life insurance. This type of life insurance has many benefits.
1.No Medical examination. Because there is no medical exam that applicants for traditional life insurance need to take, the policies are issued much quicker.
2.Instant approval for qualified applicants.In this type of life insurance, you can get the coverage in as quickly as 24 hours.
3.It’s much more convenient. This is the right option for you if you don’t want to go through the exam or if you are afraid of needles.
4.Shorter application. The policies are issued much quicker
Though some may think that this type of life insurance is for people who are unhealthy, that is simply not the case. There are some people who are taking advantage of this and lie in their application to hide their health problems but this is not advisable. Aside from the moral issues, there are also legal issues involved in committing such fraud that applicants should consider. Another important thing they should be aware of is that the life insurance company will still dig through the applicant’s medical history prior to the approval of the policy. They will verify the accuracy of the applicant’s answer on their application.
Life insurance companies in most countries have the right to investigate on the accuracy of the applications if the applicant die within two years after buying the policy, Keep in mind that the moment you sign the policy, you are giving the life insurance company the right to investigate on all your records whether medical records, employment records and even government records.
No medical life insurance is very popular nowadays as insurance companies are trying to look for ways to differentiate themselves inthe market. Though this may be the best option for people who don’t want to go through the exam, there are also cons in this type of life insurance. The premium that comes with this policy is typically much higher as compared to a standard insurance policy. The reason to this is mainly because the company is taking a bit of risk in their no-exam life insurance.