What is no medical exam life insurance?

No medical exam life insurance is insurance offered by companies for which you do not need to undergo any medical checks or blood tests in order to get covered.

These types of life insurance are mostly offered online or by insurance discounters through online and offline advertising channels (e.g. over the internet and TV). They seem good value and in most cases are.

Often, you will also find that these insurance policies are actually underwritten by the same well known mainstream insurers in Australia that also provide comprehensive solutions. They just use a different marketing channel to find customers that fit into a certain set of low risk criteria for no medical exam life insurance and do not mind having a "lite" product instead of the comprehensive package.

Most often, no medical exam life insurance is a "lite" version of the more comprehensive product that insurers offer.

Life insurance companies require your personal medical history before they can provide you with cover. These days, your confidential details are collected during the application process over the phone or by internet. The insurance consultant will ask you detailed questions about your medical history. They need to know medical events that have happened to you such as accidents, illnesses, injuries, reasons for hospital and doctor visits and so forth. Provided you haven't had any serious medical problems in your life and your family history does not suggest any major risks for the insurer you should be able to get standard cover without any tests required and as advertised.

If you have a medical history that is more complicated, the insurance company might still need you to go through full medical exams and blood tests to be able to provide you the cover you're seeking.

Advantages of 'lite' life insurance

No medical exam life insurance is typically offered at discounted premiums for life (i.e. death), trauma and accident protection. Discounted premiums are possible because features and benefits are limited and, for example, may cover major medical conditions only. Some insurers may even dismantle comprehensive packages into separate policies for a specific purpose such as funeral expense cover or mortgage protection insurance.

These insurance products are beneficial if your personal situation falls within the right criteria as set by the insurer. It makes sense to take out such insurance even if it's for a limited purpose only. This is still much better than not having any insurance at all.

Here's a snapshot of benefits:

• savings on premiums when using self service portals on the internet and phone applications
• additional discounts if bought and paid online or if packaged up with other policies
• simplified eligibility schedules, e.g. tiered age brackets with corresponding maximum sums insured
• simplified insurance products that are easy to understand
• no requirement to get medical check done by doctor
• no requirement to get blood analysis done
• easy to buy and quick application process

No medical exam life insurance is generally simpler and therefore easier to understand. It comes with less options and provides savings on premiums. The biggest disadvantage is, however, that you won't get all the benefits that a comprehensive package could provide. This may still leave you underinsured.

Comparison with comprehensive insurance

When having a closer look at no medical exam life insurance we find that some people might miss out because they don't fit the profile. The criteria that insurers design exist to minimize their risk of a claim. There is the actuarial profession that makes sure of that. If you do not fit their profile due to, say, some problems in your health history you still won't be able to get cover without medical exams and tests.

Conditions for discounted life insurance may be your age, gender, occupation and the existence of medical issues in your life. The insurer sets maximum lump sum benefit amounts based on age brackets to minimize their risks.

For example, if you're in the 20 to 40 age group you can get life insurance of up to $1m. If you're between 40 and 50 this sum drops to $700,000. In other words, you couldn't get cover for $1m if you were 42.

Sometimes, no medical exam life insurance is mistaken for a combined life and tpd (total and permanent disability) offer. However, it is advertised as life, i.e. death insurance only. If it really has a TPD cover option it comes at an extra premium which is often not advertised upfront.

Overall, flexibility and customization is lost when choosing no medical exam life insurance.

You also won't get any advice on how much insurance would be good for you or your family. You would have to do your own analysis and hope to get it right before you go shopping online.

What to do if you're after certainty?

In contrast, comprehensive insurance packages provide more features and benefits. They are more difficult to evaluate and a financial planner or insurance broker may have to help out. By doing so chances are that you'll know:

• what types of life insurance including features, benefits and options you will get;
• end up with a detailed insurance analysis to make sure you're not underinsured; and
• can make an informed decision about protecting your life, wealth and financial freedom.

No medical exam life insurance is limited and it is very important to find out what these limitations are. Also, normally there is no income protection type cover available.

Low premiums do not necessarily mean better value!

Full comprehensive life insurance can offer you much more. It might even provide you with cover if you are not eligible for no medical exam life insurance should you not fit the given criteria. - In the end, what you pay is what you get.

More information:

Types of Life Insurance
Mortgage Protection Insurance
Income Protection Insurance
Small Business Insurance
Life Insurance Quotes

Return from No Medical Exam Life Insurance to Life Insurance Australia
Return from No Medical Exam Life Insurance to Discover Financial Freedom

www.Discover-Financial-Freedom.com
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phone 02 8861 1688

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