What Are The Reasons For People To Prefer No Medical Life Insurance Policies To Traditional Term Life Policies
In spite of their higher rates, the life insurance no exam policies are increasingly becoming popular. Do you know why it is so? The reason is: a large section of the society today has enough cash, but not enough time. In these days of rat race, people don’t find time to spare even to insure themselves. Many people live uninsured simply because of that. They cannot spare enough time or energy to go through the purchase procedure set by a fully underwritten traditional policy and hence they opt for it.
First, let us make it plain that a life insurance no exam policy is actually a term life policy. That means that these policies are sold for a specific years and the money you pay does not buy you anything other than death benefit. In other words, these policies, in spite of their higher rates, do not accrue any cash value and so if the insured outlives the policy, no claim can be placed. However, these policies also have some advantages, which make them so popular. Let us go into that now.
The USP behind the popularity of these no exam policies lies in its simplified and hassle free purchase procedure. These policies are designed to provide instant term life insurance coverage. You apply today and if you qualify, your family starts getting the coverage from tomorrow. You only need to make sure that whatever information you provide while filling up the forms is correct to the best of your knowledge. Therefore, before you apply for these instant term life insurance quotes, gather all the inputs meticulously and have a cross check if necessary.
Anyway, filling up online forms is probably the only thing that you will have to do under a no exam policy. There is no face-to-face interaction of any kind; some carriers of course require you to appear for a phone-interview, but that is all you will be required to do. Most carriers have done away even with that. Indeed, in most cases, the entire procedure is completed through internet. You not only receive the quote, but also the final approval online and that too within twenty-four hours.
Contrarily, the purchase process of the fully underwritten policies is rather complicated and long-drawn affair. There are quite a few steps. Some of these steps can be completed online, while others require direct interaction. Let us go through them:
- First, you need to apply for the quotes. You can receive life insurance quote on line.
- Next, you need to compare the quotes and select the right policy as well as the right carrier.
- Once you have done that, you need to fill up a larger application form, which requires you to provide all kinds of details. This step too can be completed online.
- You should now get ready for an interview and a paramedical test. Both these steps need direct interaction, which is not liked by many.
- Once that is done, you have to wait at least for four to six weeks for the underwriting process to end. Many people find such long wait exasperating.
Now, you see why some people prefer the no medical life insurance to traditional term life policies. However, such policies can be of two types and the rates as well as the benefits depend on what type of policy you choose. The first is simplified issue policies. These policies do ask some health related questions and the coverage is based on the answer you provide. Therefore, the coverage under this policy is not guaranteed.
There are guaranteed issue policies too. Along with exempting you from taking any medical test, they also exempt you from answering any kind of health questions. However, to cover this added risk, such guaranteed policies are not only very expensive, but the coverage too is very limited. People generally buy these policies to cover their last expenses. Contrarily, the simplified issue no medical policies have wider usage. Many people buy them to cover their regular insurance needs.
However, while you apply for no medical policies, be aware of the following factors:
- Be honest about the information you will be required to provide. Remember that the carriers never ask any question that they cannot check. If you do provide misinformation, you may have to lose your coverage later some time.
- Secondly, if you are opting for it because of any medical or lifestyle problems, you must first check with the special policies conceived for cases such as yours. That may turn out to be cheaper.
- Lastly, do consider the fact that you can get better coverage at lower rate if you opt for regular coverage.