No Exam Life Insurance: Main Principles
August 06, 2020

No Exam Life Insurance: Main Principles

Since no exam life insurance is growing more popular every day, myths and lies about it are spreading exponentially. In this article, we will uncover the truth. Read to find out why no exam insurance is a good choice if you care about your time and money!

Life insurance is an agreement between you and the insurance company that obligates to compensate a certain amount of money to your family in case of an accident. There are many ways to calculate your rate. For instance, in accumulative life insurance, all risks are taken into account: survival, death, bodily injuries, accidents, disability, and more.

For life insurance, the mortality table is also analyzed to determine the rate, which shows how the generation of people born decreases with increasing age. Using the mortality table (a table showing the number of people within a specified group, starting from a certain age, who are expected to be alive after reaching a certain age defect), the possible number of payments is established in the event of the death of the insured or surviving until the end of the insurance contract.

Primary information about the object and risks are taken from the insurance application or the questionnaire, possibly also from the surveyor's opinion, the pre-insurance examination act and the direct study of the object by the underwriter.

Myths About No Exam Life Insurance

Reputable insurance companies carry out not only a full-scale survey but also conversations with the client himself, an assessment of his health by experts. Large transactions are carried out only with the permission of the board of directors of the firm because we are talking about significant insurance premiums, which cannot always be covered with your own, not borrowed funds.

Since both no exam and ordinary life insurances require certain funds from the client, there have appeared much uncertain information about insurance policies. When it comes to no examination policy, there are many myths that often mislead people, and they find themselves with no insurance at all.

Let’s discuss these myths and break them down immediately! 

No Exam Life Insurance Companies are Fraud

This myth was based on real stories of refusals to compensate for damage from unscrupulous insurance companies. Let's be honest - there are refusals, but a relatively large part of them occurs, among other things, due to customers' ignorance of the terms of the contracts that they sign.

But if you approach the conclusion of a contract, honestly studying all the exceptions and situations, then the agreement promises to be transparent and understandable to both parties. Be careful and clarify questions before signing. The right decision would be to contact an insurance broker, who will study your contract with the highest quality and will help you draw it up in a legally competent manner.

No Exam Life Insurance Is Useless 

This opinion is formed by those who pay annually for insurance, but nothing happens, and, accordingly, there is no proper experience of compensation. Therefore, of course, over time, the question arises - why do I spend money if I don't get anything in return?

Let's think about it. First, the turns of fate are not predictable, and without insurance, you risk being left alone with your problem. Secondly, the policy is not a tool of earning, but a guarantee of damage coverage and return to its original state, as before the occurrence of the insured event. Third, even if nothing happened to your health or property, remember that this investment guarantees a calm future.

No Exam Life Insurance Doesn’t Need a Middleman

An insurance broker is the only participant in the insurance market who cares about the interests of the client. He is tuned in to a growing client list and long-term relationship. This is his reputation and confirmation of his qualitative competence in this matter.

And above all, customer satisfaction is the key to the broker's success. This is a mutual deal since it is beneficial for the broker to defend the interests of his clients before the insurance company. It is beneficial for the client not to waste time and energy looking for the latter. In turn, the insurance company builds a compromise relationship with the broker, so as not to lose the list of its clients, which makes it primordially fulfill its obligations to the insured.

No Exam Life Insurance Companies are Easy to Deceive

This myth has become widespread because of the very nature of the insurance - it doesn’t make you to conduct a medical examination. However, in the event of an insured happening, the insurer may conduct its own independent investigation and reveal the presence of intentional harm to health by the insured himself or interested parties. In this case, the policyholder has the right to refuse to pay the premium if the above is proven. 

No Exam Life Insurance Coverage Is Small

The insurance rate depends not only on your health condition. In large portions, the insurance rate depends on your lifestyle. In order to understand what kind of life the borrower is leading, he is offered to fill out a questionnaire with tricky questions. How much you have to pay depends on whether you have bad habits.

Those wishing to insure themselves will have to answer other tricky questions: how often did they get sick in childhood, how often do they get sick now, whether they suffer from chronicity. However, not all companies demand you to answer these questions.

It is also important for insurance companies whether the borrower is engaged in extreme sports. If a person goes downhill skiing, the rate increases automatically. It also matters whether the borrower works in hazardous work.

Final Word

Summing up, we can say that insurance rates are structured systems that are compiled both on the basis of individual client indicators and general population statistics.

If you wish, you can artificially lower the insurance rate by correcting your health or quitting smoking during the questionnaire survey at the insurance organization. An effective underwriting system in the construction of insurance rates allows insurers to form a clear basis for financial relations between participants in the insurance market.

However, if you choose the non-examination insurance policy, you won’t have to go through many troubles and receive life insurance in just a few days! So, the decision is quite simple, but it’s up to you!