Equote - David Livingston

A non-medical term insurance is a suitable alternative to traditional life insurance term life insurance. Though it is more expensive than the conventional policies, it simplifies the underwriting process. It also eliminates the cost of medical tests and the time spent waiting for these tests. This type of policy is available for the following groups of people:

    Seniors

    High risk professions

    Dangerous hobbies

    Chronic illness

    Pre-existing conditions

Apart from people who fall under these categories, if young and reasonably healthy individuals apply for this, they can get good coverage without the hassle of undergoing medical exams.  Since life insurance companies are taking a risk by insuring such people, they will carefully select those who qualify for a term life insurance no medical. For those with dangerous professions, who have a chronic illness or seniors etc., this policy can be quite expensive.  Yet, this policy could possibly be the only way that most of them can get insurance coverage for their family.  

When you get a life insurance quote on line, you will be given the rates for different categories. Life insurance rates will always be determined by the risk posed by the applicants. Obviously a healthy, young person is considered less of a risk that one who is older, smokes or has a chronic illness. Hence, the former will get the isurance for cheaper rate. It is best to request several quotes so that you can compare them and get the best possible rate.

For a no medical life insurance since a medical report is not submitted by the applicant, the risk is not known. Hence, the risk is perceived to be greater and hence the rates will also be proportionately higher. Non medical insurance applications can be completed online. The applicant needs to answer some of the questions related the general physical condition, the height / weight ratio, family medical history etc. Some companies will ask the primary care physician of the applicant for a medical report.  

Since, very often the entire application process can be completed online this type of insurance is often called instant life insurance. Sometimes based on the answers given in the questionnaire, the insurer may think that the applicant will develop a serious illness later. In such a case, they may ask the applicant to do blood work and a physical exam. If these exams reveal a dangerous illness, the applicant may not be given coverage under this plan and will have to seek an alternative. It is very important to answer all questions truthfully. Otherwise it will be considered as fraud or material misrepresentation and the application can be rejected.

If a person tells a lie either accidentally or deliberately, it is considered a material misrepresentation.  If such a case is found even after a few years, the policy can be terminated or payment denied on any future claims.  In such a case, the beneficiaries can only get a refund of the premiums without any further benefits.  Even though a non-medical policy can be issued for most people, the insurance company still follows a selection process and determines rates based on some pre-determined factors.

Hence, since younger people, especially those under 35 will usually represent the low risk category, they can get much lower rates.  This again depends on their lifestyle choices, nicotine and alcohol use etc.  Usually, term insurance no medical exam plans are issued for anywhere between 5 and 30 year periods.  Most permanent insurance policies are issued only after a medical exam is undergone since they are taken for the entire life of a person.

Apart from non-medical insurance, there are some others like instant-issue term insurance that can be given quickly.  For such a policy, you will be asked around 40 questions that cover a range of health issues.  This includes questions on whether a person drinks, smokes, takes drugs, gender, age etc.  The premium rates will be fixed based on the questions with women generally given lower rates, as, they are usually healthier, have lesser dangerous habits and are therefore expected to live longer. Although non-medical insurance is more expensive, it benefits a lot of people.  So, the best move would be to compare online quotes for this plan from multiple insurance providers, calculate costs and then go with someone who offers the best rates, terms and conditions.