Benefits of non Medical Life Insurance

Life insurance is a contract between the policyholder (the insured) and the insurance company (the insurer) which will enable the name dependents of the policyholder to receive compensation in an event of death, terminal illness, or permanent disability of the ‘insured’, according to the terms and conditions of the contract. It requires the ‘insured’ to pay a premium to the insurance company and in almost all life insurance policies, the premium will be decided upon reviewing the age and the health status of the ‘insured’.

Medical checkup and the life insurance policy:

Thus, each life insurance policyholder is required to undergo a medical checkup at the time of applying for the policy and in some instances, the checkup needs to be repeated annually as well. However, when the person applying for the life insurance is detected of having a medical problem or an ailment, the insurance company will decide on the premium that they charge or else whether to issue the life insurance in the first place. In instances of medical ailments, the premium to be paid by the applicant can significantly rise and at times the application may even get rejected by the insurance company.

Solution for those who are battered by medical checkups:

When considering these facts, it is obvious that not all can obtain a hassle free life insurance without undergoing a medical checkup. At the same time, depending on the results of the medical checkup, one may become ineligible to apply for a life insurance as well. In order to alleviate these problems, to lure these ineligible candidates into taking up life insurance, as well as to promote life insurance among those who do not wish to undergo the cumbersome health checks, insurance industry has introduced a new variety of life insurance known as the ‘non-medical life insurance’.

Procedure to obtain ‘non-medical life insurance’:

When obtaining a ‘non-medical life insurance’, the applicant need not undergo medical checkups nor they have to submit reports obtained from medical practitioners. It was first introduced in Canada and one reason for such an initiative was the lack of medical practitioners in certain parts of Canada to issue a medical report or else to perform a medical checkup, as required by the insurance company. Thus, with the introduction of the new insurance scheme, many individuals benefitted and it opened the doors towards an untapped market for the insurance community.

Benefits of non-medical life insurance:

Although the unique benefits associated with non-medical life insurance vary from one insurance policy to another, the most significant benefit was the avoidance of medical tests. At the same time, it has enabled even a person with a bad medical history to qualify for receiving non-medical life insurance. Furthermore, a person with an average medical history could receive a lower than usual premium in comparison to a premium when they obtain a traditional life insurance. The non-medical life insurance also facilitates those who do not wish to undergo medical tests due to their dislike or ‘phobias’ for needles and other investigations. Lastly, not having to undergo medical tests would mean that, a person could receive a non-medical life insurance in double quick time when compared with more traditional life insurance policies.