No Exam Life Insurance Policy
Consider No Exam Life Insurance
Is no exam life insurance a new thing? If you read some of the writings
on the subject you would think it is.
The fact is that the idea is not
new at all. Life insurance companies have been issuing policies on a non
medical basis for a very long time.
The reason is that they can hold
down costs by doing so.
You may ask how can a life insurance company achieve lower expenditure by issuing a no exam life insurance policy. Let us try to get the thinking of the decision makers in these companies.
Save On No Medical Life Insurance -
- What Does It Normally Cost To Issue A Policy?
The first thing we have to consider is the life insurance agents
commission. In many companies that can be more than the first years
premium. The life insurance company has to pay administrative staff and
The efficient companies break down the cost and
determine what miniscule percentage is applied to each actual policy.
They must do an inspection report. In other words they have to check out
If they need to have a medical
done they have to pay a nurse, a para-medic or a doctor to do this
examination. They may need an XRAY and blood work in addition to the actual medical depending on what the examiner uncovers.
In some cases a second or third medical examination may be needed.
- People Are Living Longer Today
The life insurance companies, after much research and after
watching trends over a long period of time, have come to the conclusion
that people are living longer today than ever before. The no medical exam life insurance policy has become common practice under certain conditions.
It used to be that young people would get most or all their
insurance without needing a medical. The obvious reason is that they
would more than likely have a long life ahead of them.
People up to age
50 or 55 would qualify for some no medical exam life insurance but usually a smaller amount than the 20 year old. The reason is the shorter life expectancy.
Today people are living longer thus the life insurance companies can extend the availability of no medical life insurance to age 65. People take better care of their health and as a result more life insurance is approved at older ages.
The life insurance companies
have eliminated much of the cost for issuing a policy. Clerical and
administrative cost still exist but the cost of doing an examination is
eliminated. An inspection report is still required.
For some of those
companies issuing no exam life insurance policies based on an online
application the agents commission is eliminated. We can only conclude
that this new way of doing business is a good deal for all concerned,
the life insurance company and you the buyer.
Let us be absolutely clear on one thing, these policies cost the consumer no more online than had you bought them from an agent.
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