Taking out a life insurance policy is definitely a responsible thing to do. You never know what might happen to you or when you might die, and if you have a family that you want to take care of after you’re gone – a life insurance policy definitely seems like a smart thing to do.
However, what about a no medical exam life insurance policy? Is that a good idea for you? It has become quite popular over the last few years, so there must be something to it, right?
Well, that’s correct. On the one hand, there are certain benefits that come from taking out a no exam life insurance policy, but as is the case with every other thing in life – not everything about it is so great.
On that note, we’ve decided to try and answer one simple question – should you get no medical exam life insurance even if you’re healthy, or is there a better alternative?
Well, let’s find out!
What Does The Traditional Medical Exam Entail?
Before we get into insurance policies and all that other good stuff, let’s first explore the actual medical exam. Knowing what the exam itself is like will probably help you gain a better understanding of why anyone would want to avoid taking it.
Generally speaking, a traditional medical exam is pretty straightforward. It usually includes information on the basic parameters like age, height, and weight, but you already knew that. Apart from those metrics, a doctor will check your blood pressure, do some blood and urine tests, and a couple of other standardized ones.
So, all in all – a traditional exam is nothing scary or time-consuming. Which begs the question – why would anyone want to avoid it?
What Is Life Insurance?
Before we can answer the previous question, we must take a look at what life insurance actually is. We all know how it works – you pay the monthly premium, and your family gets money when you pass, or you get some cash in case you end up in an accident. However, there’s one thing many people don’t get, and that’s the following.
Insurance companies aren’t there to help you or your family. An insurance company is there to make money. And, quite frankly, they usually do.
You see, when you take out a policy, you enter in a bit of a stand-off. Both you and your provider expect the other one to get the worst part of the deal.
According to lifecoverquotes, “You buy peace of mind that your family’s expenses will be covered until your children have left education and are financially independent”. Also, you expect to pay less than you receive in the end. On the other hand, insurance providers hope you pay a lot more than your family receives in the end.
Since they’re the ones assuming the risk – they will set monthly premiums higher or lower and will offer you a better or worse deal based on a number of factors – including your overall health.
Why Is Medical Exam Important?
Since you now understand the basic principle, you can see how important it is for the provider to assess your overall health. They need to know what they’re in for so they assess your overall health.
They base their policy’s terms based on the results of the exam.
For example, if you suffer from a life-threatening condition – you are more likely to “cash out” before you pay out your premiums, which is why you will get a “bad deal” (higher premiums, lower pay-out) on your policy. On the other hand, if you’re healthy and young – the insurance provider will expect you to live longer, lowering your monthly premiums and offering a bigger “pay-day” at the end of your term.
Now, how does the no exam policy play into all this?
Well, some people aren’t willing to undergo a medical exam, and insurance companies have found a way to profit off of it.
Namely, nowadays, insurance companies offer you a chance to take out a life insurance policy without the medical exam, which means they assume more risk on their end. But why would they do that? We’ll get to that in a second.
Why Would Insurance Company Agree To A No Exam Life Insurance Policy?
One word – money.
If you are not willing to undergo a medical exam, the insurance company will then take into consideration average data based on your age. However, since they can’t know if you’re perfectly healthy or you have a lingering problem you don’t want to disclose – they will do the following.
- Increase the premiums.
- Lower the benefits.
It’s as simple as that.
You’ll just get a worse deal.
For example, let’s say you’re 30 and you’re in great health. If you were to take out a regular, term life policy, and you were to undergo a medical exam that would prove that, you would probably be able to qualify for a policy up to one million pounds, with an appropriately reasonable monthly premium.
On the other hand, if you were to take out the same policy but without the medical exam, you’d only be able to qualify for up to 500,000. What’s worse, your monthly premiums would be bigger than the ones you’d pay for a million-pound benefit.
Conclusion – Should You Get No Medical Exam Life Insurance If You Are Healthy?
So, should you get a no medical exam life insurance policy if you’re healthy?
In a word – no. If you’re healthy, there are virtually no benefits that come out of a policy like this one. Taking out a regular term or whole life policy is a lot better choice for a healthy person.
The only “benefit” is not having to go to the doctor’s office – which makes no sense. If you think that avoiding a single exam is worth thousands of dollars in premiums and hundreds of thousands in benefits – you should probably visit a doctor’s office.
Even people in their 20s will get a worse deal if they take the no exam route.
So, just take the exam. It is a much better option.