Getting a life insurance may not be very difficult for most people. But for some, it is difficult.
Those who have a history of illnesses or those who are employed in life-endangering jobs are
all considered high-risk applicants. People in old age will also fall into this category. Why are
they considered high-risk?
Insurance companies base their risks on how many premiums they will be able to collect
before they are forced to pay out the death benefits. If it is a healthy person, then there is
most probably no immediate possibility of death. Hence the companies can take a premium
for long periods before they must make the death benefit payment.
Getting A No Exam Life Insurance
For the above people who are in the high-risk bracket, getting a no exam life insurance is the
solution. So, what is a no exam life insurance?
Typically, all life insurance applicants must undergo a medical test before their insurance
application can be processed. This examination will include urine and blood tests and some
basic medical examination. The doctor will also quiz the applicant on his medical history and
any surgeries the applicant has undergone recently.
He will then pass on the information to the insurance company. If the applicant has some
serious health condition he will not be eligible for the insurance. This type of insurance which
is sold after a medical examination is called the medically underwritten life insurance.
On the other hand, people can get an insurance without undergoing a medical examination or
meeting a doctor. Such a policy is easier to get and takes much lesser time. This policy is
called the no exam life insurance policy.
How Is It Different?
In many ways, the no exam life insurance is not different from the other life insurance. In this
policy also, there is an assured payment of a sum in the event of the death of the applicant.
The difference is that the premium for a no exam life insurance will be higher than the
medically underwritten insurance.
The reason for this increase in premium is because the applicants for this policy are high-risk
individuals. When you are a high-risk applicant there is the possibility of the companies
having to pay the insurance benefit much earlier than for a healthy individual. So, the
companies want to collect as much as possible before they pay out.
However, the no exam life insurance policy is a boon for those with health issues or those at