Life Insurance Without Medical Exam

A life insurance policy or rather a whole life insurance policy is principally a coverage of the financial interests of a deceased person's surviving family. This policy is a highly effective one when bread earner of the family buys such a policy and becomes an insured person. Life insurance without medical tests or examination is just a variant of the common life insurance policy. However, before we have a look at the features of such an insurance policy, let us get to know the elementary mechanism of the common life insurance, which is often also known as whole life insurance.

About Life Insurance

Life insurance principally coves the risk of financial hardships that may befall on a deceased person's family. This kind of policy is also often considered to be a policy of investment. There are two primary classifications of the whole life insurance policies, based upon their primary mechanism. The initial stages of any life insurance policy are the same that is the person who wishers to purchase a policy, applies to an insurance company. The insurance company makes a detailed analysis of the person and his health which is known as an underwriting process. Some features about the medical history of the person that are considered include, the person's habits (smoking or alcohol), chronic illnesses, the person's age and the overall lifestyle. In some cases the risk in profession is also considered. Based upon these facts, life insurance's premium is quoted to the applicant person. Again a simple logic that is followed is that the younger the person and the healthier his lifestyle, the lesser is the premium amount going to be.

Now within this mechanism there are two segments, namely:

• There are some life insurance policies that give a certain volume of returns over the premium paid. Most of the returns over investments are paid in a structured settlement, very rarely one will find a lump sum payment. Often the premium and investment period overlap each other. In such a type of life insurance, the premium is quite high, making it an option that is not convenient for all people.
• The second type is one where there are not returns, which brings down the value of the premium.

Life Insurance Without Medical Exam

A life insurance no physical exam, can be once again divided into the two segments, which include the policies with returns and the ones with no return.

There are, however, few people who can easily avail the no medical exam term life insurance as the insurance is often stated to be a high risk policy. The following are some of the terms and conditions for such an insurance policy.

• This kind of insurance policy is given to non smokers and people who tend to consume alcohol in moderation.
• The company also does not provide this kind of insurance to over-weight people or even the people who follow uncommon lifestyles such as late night shifts. An abnormal lifestyle increases the risk quotient.
• People who work in hazardous working condition where there is potential threat to life, are denied this insurance policy.
• Apart from that this kind of policy is also not quoted to people above the age of 40 to 45 years.
• People with chronic illnesses or diseases also cannot avail this insurance policy.

Usually this policy is given on the basis of a health certificate granted by a recognized doctor. The company often gets access to EMRs (Electronic Medical Records) and tends to keep a tab (annual) on the insured person's health. The drawback is, due to a considerable risk, the quotes of such an insurance policy have a high premium rate. Term life insurance is also a variant of the same policy, but is valid for life term insurance.