Assurance With No Medical Exam Life Insurance

Disasters and accidents happen every day so you must be prepared. So why not get a life insurance with no medical exam?

Life insurance is an arrangement between the insurer (the company selling the insurance) and policy holder (the one buying the insurance policy) in which the insurer will pay the beneficiary (the one who receives the payment) money when the policy holder dies. The basis for life insurance is it recognizes that human life is valuable, and on the event that a person dies, there must be compensations for the loss. Having a life policy ensures that the beneficiaries of the policy holder will be taken care of financially in case of sudden death.

One example of life insurance is term life insurance. Term life insurance is temporary but simple and cheap. Policies for this kind of insurance cover only a certain number of years, depending on what you choose. People get this type of insurance to pay for school tuition fees, pay for child care or pay for debts and liabilities. However, this type of life insurance requires a medical examination to prove the insurability of the person buying the insurance policy.

Nowadays, there is available life insurance with no medical exam required:

Simplified issue life insurance does not require any medical exam but the person taking out the policy must provide some medical information relevant to himself or herself. There is risk to this because a person might disregard an illness he or she might have and not put it in the application. If the insurer investigates the persons medical records and find anything that was omitted, unintentionally or otherwise, the contract can be voided.

Guaranteed issue life insurance is an example of life insurance with no medical exam. Here, you will not undergo any medical exam and you will not be asked medical questions when you file your application. This is for people whose medical condition prevents them for seeking life insurance. Its processing takes a short time and you have the option to get a temporary or permanent policy. The downside to this kind of life insurance with no medical exam is that it is more expensive. All the information the insurer will get is the policy holders name, age and sex so the rate he or she will pay will just be based on this data.

Graded benefit life insurance is another example of life insurance with no medical exam. Investment and payment for this type of life insurance is more complicated than guaranteed issue life insurance. The death benefits in this type of policy are not level, meaning it is not equal to its face amount. If death happens in the first year, only a percentage of the death benefit will be paid (plus interest, which can fall anywhere between 7 to 10 percent). It will only be level after a number of years (2 or in some cases 5 years). This type of policy is typically given to people aged 50 and above.

Going to the doctor is one of the things people avoid as much as possible. Doctors fees are outrageously expensive and because of this, if a person is sick, he or she will just take an over the counter medicine for their illness. Life insurance usually requires the policy holder to undergo a medical exam to ensure a clean bill of health. But sick people have the right to get a life insurance too and this is where life insurance with no medical exam comes in.

There a lot of benefits for buying life insurance with no medical exam. This kind of life insurance has a faster application process. Typically, the processing of life insurance takes about four to six weeks. Because no medical exam is required and there is no underwriting, life insurance with no medical exam requires only a number of days for processing. Also, this type of life insurance is perfect for people who are uninsurable because they are sick and/or old and may be unable to get an ordinary life insurance. This also assures that the person availing the insurance policy will have his or her funeral expenses covered in case that person dies.

Usually, the insurer will base the payments for the policy according to a persons life expectancy and this can be achieved with the help of a medical exam. Since there is no medical exam in no medical life insurance, it is more expensive. The insurer can only guess what your life expectancy is and this post risks to the company and they need to make compensations.

Before getting this kind of life insurance, you must do research. There are a lot of insurance companies that offer this type of policy and you can surely find one that will fit your needs.