For individuals who want to avail of life insurance, but are not keen of undergoing a medical test can avail of the one without medical exam. This is fast becoming quite popular, but there are certain rules and conditions under which such a policy can be issued.
The concept of life insurance that comes without a medical examination is becoming popular as it saves a lot of time of the people and also tends to be a viable option for those with minor, and in many cases, almost insignificant disorders. Another policy that is similar to it is a term life insurance policy, which in some cases, simply stated as a term insurance. Apart from all these aspects, one must also note that affordability in this case is very rare owing to the fact that the premium on any no medical examination policy is always quite high.
About Life Insurance
Whole, or rather full life insurance can be broadly defined as a policy that provides coverage against financial risks and burdens that a person’s family might suffer after his demise. Thus, in case you are a family man, then having such a policy is a basic necessity. If you cannot afford this one, then you can also consider the term life option.
The entire mechanism is simple; the policy can be purchased by an individual from the insurance company. It makes the person has his nominated family members ‘insured’ from certain financial risks. The policy holder has to pay a certain sum to the company, which is known as a premium. This premium is principally decided upon factors such as age, chronic illnesses, and other medical conditions of a person.
In some cases, some other factors such as the income of the person and the number of dependents also affect this amount. In certain cases, there is a prefixed rate of premium and also a prefixed compensation rate. Overall, the sanction of the policy is decided with the help of actuary and underwriting methods.
Now, in cases of incidences of demise of the policy holder, a certain sum of money is forwarded to the nominated persons on a monthly or annual basis. This amount will be in proportion to the premium, and in some cases, it will be predetermined. The compensation is paid in a structured settlement, and lump sum amount is very rare. The compensation amount is known as a death proceed.
All types of insurance policies can be classified into two aspects, namely the ones that have a return rate on them and secondly, the ones without it. The life insurances having a return on them tend to have a higher premium, but they also have very good rewarding returns. The second ones, which do not have any returns, tend to have a lower premium rate. The term life insurance, by default, do not have any return rates.
Insurance With No Medical Exam
As mentioned above, availing it is difficult, the primary reason being that there are several requisites that are imposed upon the applicants. Here are some essential points that you should know:
- The applicant should not have any chronic disorder or disease.
- He should not have any substance addiction. In certain cases, a doctor’s certification is required to ascertain and prove that the applicant is not addicted to any substance.
- Usually, the applicant’s age is subject to an upper limit, i.e., he or she must not be above 40 or 50 years of age.
- Apart from these requisites, the applicant is also needed to answer some queries and questions of personal nature. The answers to such queries are held as conclusive evidence, and an insurance claim, which is false or untrue, can be denied on the basis of such answers.
- The general rule of thumb that is applied to such a policy is that the greater the age of the applicant, the greater is the premium going to be.
In several cases, the applicant’s EMR (Electronic Medical Record) is also reviewed by the insurance company. In the case of any no medical exam life insurance, the premium is usually deemed to be high. However, the total amount that is paid as a premium does not usually yield high returns.