Most insurance providers ask consumers to get a medical exam before they will issue them with a life insurance policy. This is both costly and inconvenient. Thankfully, there is a solution to this problem – the no exam life insurance policy.
What is a No Exam Life Insurance Policy?
A no exam policy is a life insurance policy consumers can obtain without getting a medical. While these policies are convenient, they do have their drawbacks. A traditional insurance policy will ask buyers to submit their medical results so that they can start the underwriting process.
The biggest drawback of no exam policies is that they are more expensive than traditional life insurance products. The more an insurer knows about a person’s background, the more likely it is that the consumer will get a good deal for their policy. It is worth noting that no exam policies can be up to three times more expensive than regular policies.
A good aspect of no medical exam life insurance policies is that consumers can get coverage relatively quickly. People who buy regular policies will need to schedule a medical and send the results to their insurer. The insurer will then base the policy premium on the level of risk the customer poses. For example, a person with cancer may die sooner than a healthy person. As a result, the insurer will charge a higher premium for the policy.
There are benefits and drawbacks to both types of insurance policies. Those who are unsure of which policy will best suit their needs should talk to an insurance adviser. People in this job know how to match consumers with a policy that meets their needs. Generally speaking, no exam policies are great for older people and those who have health conditions which may affect their lifespan.