Difference between No Exam Life Insurance and Traditional Term
A no exam life insurance or, a non-med term life insurance plan is different from a traditional term plan where in order to get the coverage, the applicants to go through a free mini-medical exam.
A nurse/paramedic visits you at your location of choice; and depending on how old you are and how much coverage you have applied for, takes your blood pressure reading, draws blood, confirms your height and weight etc. The underwriter at the carrier depends on this to figure out how much risk an insurance company is taking in giving you a life insurance coverage. This plus a few other pieces of information on your health which are requested in the backend dictate what your premium is going to be. The average time from application submission to approval is between 4-8 weeks.
A few reputable insurance companies forgo the medical exam part altogether, especially if you are in good health. They do, however, charge a little extra premium for this option. For those who are not comfortable with a medical exam, this can be a great option. Please keep in mind that this a privilege and not a right. If the other reports on you show bad health, this option of no exam may be withdrawn by the company.
Why would you consider a no-exam, instant issue term life insurance?
- If you are trying to secure a business loan and urgently need a life insurance policy to finalized it.
- You need to list children a beneficiaries in a divorce decree.
- Aslo, if you hate needles and medical exams, this life insurance option can be your savior.