Can I Get a No-exam Policy?
A no-exam life insurance policy is a policy that does not require a health exam and is something that a lot of individuals prefer. They prefer it because they don't have to have someone come into their home and perform a health exam on them. But the question is what a person has to do to get a no-exam policy.
Sometimes whether or not a person can have a no-exam policy depends upon their health and depends upon whether or not they pay a higher premium for such a thing. Sometimes this is up to the discretion of the insurance company. They may feel that their risk is too high and, in other cases, realize that the risk is a low one.
Buying a No-Exam Policy
One of the reasons why individuals like the no-exam policy is because the application process is sped up. Sometimes, it can take around four weeks for the entire application process to be completed. With a no-exam policy, this amount of time is not an issue. As a matter of fact, a policy can be put in force in just a matter of days after figuring out how to get quotes and applying.
The no-exam policy is also a way in which an individual who would normally not be insurable to obtain insurance. They do have to pay a higher premium than they would if they had the exam and were deemed insurable. For some individuals, though, this is the last resort. It is their only option to have the life insurance that they need to pay a healthy death benefit to their families.
The reason for the higher premium is the consequence for not having the health exam. The premium is usually based upon the life expectancy of a person and the exam helps to determine that. If there is no exam to determine that, the insurance company has to offset the premium somehow. In this case, all the insurance company has is a guess based upon your answers on your application. Through the premium increase, they compensate for any information that may not be correct.
Those with Illnesses
There are individuals with certain illnesses who will prefer the no-exam policy. Some individuals see a foreseeable end to their life, so they want to make sure their family is going to be taken care of when they pass. They may not have had any life insurance policies before and they know that it is important that they do now. Of course, this is not preferred by the insurance company, but it does happen.
Then there are those that are later in years and they realize that they need coverage or they need more in addition to a policy that they may already have. Elderly individuals would normally have a difficult time obtaining life insurance, but the no-exam policy does help. The premium, however, would be quite high.
And although the exam is not required, it does not pay to lie about a current health condition. The reason is because a person who dies of cancer, but said on their application that they didn't have cancer, basically forfeits their coverage. The death benefit will usually not be paid because the right premium was not paid based on the individual's health condition.
Too many individuals who were ill have not disclosed their illness when obtaining a no-exam policy. But when the insurance company found out that they died of an illness they had for a while, they couldn't pay. The application does state that all information needs to be accurate. As long as it is accurate, an individual receives their no-exam policy for the correct premium.
