Why No Medical Exam is Popular for Life Insurance

Why No Medical Exam is Popular for Life Insurance

Life InsuranceThinking about life insurance can bring on mixed feelings. On one hand it dampers your mood in thinking about your inevitable death. On the other hand it gives you peace of mind knowing you are being responsible now and ensuring your family’s needs are met once you have passed away. Life insurance just like health insurance can be a burden to apply for. It seems as though the providers are putting you through so many hoops to discourage you.


Why Do I Need to Have a Medical Exam?

The major complaint about applying for life insurance is the medical exam. The truth is insurance is a business in which they can’t afford to approve everyone. If they approve all sick individuals they could be paying out on more policies than they have received payments on and that can cost providers millions.


Most insurance companies will have no problem insuring at risk patients who have their situation under control with medicines such as high blood pressure, asthma, and diabetes. Depending upon your age and medical history, most plans require individuals to complete paperwork, go see their doctor and possibly other specialists, and wait for their underwriter to go through all documentation and records. It is truly a hassle to go through.


Is There a Way Around the Medical Exam?

There are two ways around a medical exam though. You can sign up in your open enrollment plan at your job. Some insurance companies will waive the medical option. The other method is to get an insurance quote for a no medical exam term life insurance policy. The bottom line is the more of a risk you are the more you will pay in monthly premiums. Oddly enough more people take this option and pay the additional expense.


What are the Requirements for a No Medical Exam Policy?

There are three simple checks to see if you can be approved for a no medical exam insurance coverage. If there are any discrepancies the underwriter will request a medical exam.

  • They will check with your motor vehicle record to see about reckless driving and too many moving violation reports.
  • They will check with the Medical Information Bureau to cross reference prior life insurance quotes regarding your health.
  • They will pull the pharmacy database listing all your prescription medication.


Why Would Anyone Prefer to Pay Extra For Life Insurance When They Can See The Doctor?

Everyone has their reasons for not needing to have a medical exam. Some people may be traveling soon and prefer to have the coverage before hitting the road. They don’t want to deal with taking the time to see a doctor and waiting for the underwriter’s approval. Others may need the money fast and need approval for a business loan. There are some people that have not been to the doctor in ages and have felt healthy this whole time. They do not want to go to the doctor and find out there is a problem and become discouraged. Some people just plain have a fear of needles. Medical exams involve lots of blood work and x-rays.