How does no exam life insurance work?

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Insurance companies will check your health conditions before selling a life insurance policy.

If you are suffering from a terminal illness and have only a few months or a couple of years left in your life, the insurance company may not want to sell a policy because they would need to pay the full coverage amount after you die. This would not be a profitable business for them. But a no exam life insurance which does not look at health conditions works differently.

What is a no exam life insurance?

As the name implies, you don’t need to undergo any medical examinations if you purchase this type of policy. It allows you to skip the detailed paperwork that asks tons of questions regarding your medical history.

No exam life insurance is very popular among senior citizens with severe health conditions. They will not be eligible for general life insurance policies. Instead, with no exam life insurance, they don’t need to undergo any tests and create a fund to secure their families financially after they die.

Who should you buy a no exam life insurance?

It is comparatively easier to purchase a no exam life insurance than a traditional life insurance policy as it does not involve any medical test. Moreover, these policies are more affordable than other life insurance policies. Ideally, they are for elderly citizens and patients with low life expectancy. Here is a list of people who should purchase a no exam life insurance:

  • Patients with a chronic health condition like type-2 diabetes. This type of disease is very challenging to treat. No insurance company would want to offer a regular life insurance policy. In that case, a no medical life insurance policy will come in handy.
  • Many people don’t want to purchase an underwritten policy. No exam life insurance will be ideal for such people. The scheme starts as soon as you pay the initial premium.
  • People involved in high-risk jobs can also apply for no exam life insurance policies. Many people challenge their lives by participating in risky hobbies, such as skydiving. Insurance companies may not agree to provide a regular life insurance policy for such people. No exam life insurance is a better alternative in these cases.
  • Retired people with complicated health issues can also buy no exam life insurance policies. If you know that your health condition is so severe that you can die any day, you can purchase a no exam life insurance policy as it would provide significant coverage to your family after your death.
  • Many companies don’t provide group life insurance facilities to employees suffering from chronic, untreatable diseases. That doesn’t mean, however, that employees cannot get any type of insurance policy. They can apply for no exam life insurance policies and enjoy their benefits even if they lose their job.

No exam life insurance policy is beneficial in many ways, but it is suitable only for senior citizens and those suffering from terminal illnesses. Make sure you read the terms and conditions of the policy carefully before signing the documents.