3 things to know about no medical exam life insurance
Car, mortgage, home, there are items in our life that almost automatically come with insurance to protect them from damage or loss. While the reflex to ensure these material things is acquired, many people still neglect a major element in terms of insurance: life. In a society where life expectancy is increasing, it is particularly advisable to look into the subject, sooner rather than later. When the time comes to select a life insurance policy, some opt for no medical exam life insurance. What is it and what are the features of this product?
Life insurance: how does it work?
By applying for life insurance, you are covered for a certain amount in case of death, which will be donated to your chosen beneficiaries. However, at the time of subscription for life insurance, you’re usually asked to answer certain questions and even undergo a medical examination so that the insurance company can determine your insurability and the price of your premiums.
When you’re young and healthy, it’s easy to second-guess the need for life insurance. In fact, the benefits are many: to offset the loss of income, pay off debts or cover funeral expenses for example. For parents or primary sources of income, a large portion of their household responsibility is at stake.
No medical exam life insurance
- For whom?
Because of its ease of application, no medical exam life insurance is particularly suitable for people who were refused life insurance following an underwriting review, or who suffer from serious health problems. People with riskier lifestyles, such as those practicing extreme sports or working dangerous jobs, or people simply wanting to be insured without delay are also regular customers of this type of insurance.
No exam does not mean that life insurance is given on a whim. It is common to have to answer some questions. You may have different options depending on your unique life situation and budget. Life insurance without medical exam is offered fairly quickly, even instantly. Generally, the amounts covered by no medical life insurance are lower than for others.
- Two years minimum
Because they take more risk than conventional life insurance, no medical life insurance policies may require a minimum of two years before covering the full contracted amount. This means that if death occurs within two years following the purchase of such insurance, beneficiaries will only receive the total amount of premiums that were paid.
As with other types of insurance, it is highly recommended to take the time to shop around before signing a contract. Indeed, with many companies in the market, do not hesitate to compare different offers in detail and to learn more about your personal situation. If in doubt, insurance experts can be contacted for advice.