Cheapest Life Insurance Policies - No Medical Exam

Some carriers will issue insurance policies without requiring that you submit to a medical examination. You are just asked to answer questions about your past and present health status, and to sign the statement.

Many people think, in these situations, that they are receiving a bargain in the purchase of such a insurance.

However, because no medical examination is applied, most of us with health problems will be in the same class with those who enjoy normal health. Since members of greater risk are included in the group, the premium rate for such a mixed group is greater than that of a group which has only normal persons as members.

Therefore, insurance coverage requiring no medical examination, are attractive only to those who have some health problem which would ordinarily classify them in a group of greater risk. The premium rates for policies of a mixed group are less than those of policies which apply to a group that has only members with similar medical problems and greater-than- average risk. The persons with the normal expected life span cause the average life span of the entire group to be increased, and therefore the "normal" members partly pay for those who are greater risks.

Chances are you'll reason that since the insurance company requires the person seeking insurance to sign a document containing statements about his health, that person will disclose any medical problems which will allow the company to classify him in a class of special risk. In this way all those who are greater risks will be in a class by themselves, and you will not be forced to pay higher premiums because of them. This, on the other hand, is not entirely accurate. Under the law, the insurance company is normally unable to do anything about an incorrect statement of the policyholder, if the company does not discover the false statement before the end of two years after the insurance coverage was issued. Some individuals conscious of this fact may withhold pertinent information, and insert inaccurate statements in their signed application.

Because of this, if you have a physical problem which would ordinarily classify you among those of greater risk, you will find it advantageous to obtain the type of insurance which does not require you to submit to a medical examination. If, however, you enjoy normal health, it is to your benefit to insist upon the plan which requires a medical examination, and which has thereby inherently lower premium rates.

If you are seeking to buy only a small amount of insurance, the company may waive the requirement for a medical examination. If you are in good health, this waiver benefits you only if you do not pay any penalty for not having taken the examination. It is, therefore, necessary to compare premium costs of the insurance coverage offered under this condition, with a insurance coverage requiring a medical examination.

If, conversely, you seek to buy a large amount of insurance, the company will insist, under all conditions, that you take a medical examination. If you seek a very large amount of insurance, the company may require that you have two examinations by two independent doctors, to assure itself of your insurability.