It is becoming absolutely necessary to have some sort of insurance these days. One of these is the no-medical exam life insurance policy. In simple terms, this policy provides coverage for applicants, without subjecting them to a full medical or physical examination. Normally, insurance carriers require their applicants to go through a thorough medical examination to determine the level or risk and thus charge premiums accordingly. The higher your health risks the higher your insurance rates. Very elderly people who have many health complications are in most cases denied coverage completely. For such individuals, cheap no-medical exam life insurance is suitable. However, before you rush to get such a policy, it is wise to know both sides of the coin.
Benefits of this form of insurance
The main benefit of a this kind of life insurance policy is that it offers coverage for individuals who might have a hard time obtaining a regular life policy due to various health complications. It is also a great way to get life insurance coverage fast especially if it is a part of the requirements for certain occupations, and you cannot wait for the normal process which may take ages.
In a traditional coverage, it usually takes up to six weeks for an insurance to approve your policy but with this policy, it takes just a few days. Another advantage of this kind of policy is that it helps you avoid the hassle of going through a medical exam in the hospital. This process is usually rigorous and can take up much of your valuable time. Normally, if you are above the age of 50 and healthy, your no-medical exam life insurance will be able to be approved quickly.
Cons of the policy
Obviously, the main disadvantage of no-medical exam life insurance is that it tends to be more costly than traditional life insurance. In fact, research indicates that it is three times more expensive than your normal life policy. The main reason for this is that the insurance companies offering this kind of policy do not have medical information of the applicants and so they must cover their bases.
People who choose graded benefit or guaranteed issue, which are two types of no-medical exam life insurance, have a great disadvantage. If the policyholder dies within two years of buying either policy, then he or she will not get the full death benefits. The insurance carrier will only pay the premiums paid and a small interest of usually not more than 10%.