No medical life insurance, sometimes called no death policy, is simply a means to pay for healthcare costs in case of a fatal illness or a terminal disease without providing any payout should death occur. The idea behind no medical life insurance policies is to give families and beneficiaries some financial assistance in the event of a tragedy. It may be necessary to pay for the healthcare costs of the insured for a short time, until the end of the policy or until the covered individual passes away. However, this type of coverage may not offer enough money to cover the costs of healthcare for long-term treatments. Thus, it’s not really useful as a means to provide long-term healthcare coverage.
In contrast, a simplified issue policy provides an answer to the basic problem of no medical life insurance. Under this type of plan, the insurer makes an offer to pay a specified amount of money to the beneficiary in the event of the insured person’s death. Thus, the family of the insured can use the funds as they see fit. Should the insured person pass away due to a terminal disease before the end of the plan’s term, the family won’t have to wait until the end of the policy’s term to get the promised treatment. If the insured person dies during the duration of the plan, then the remaining cash value of the policy will be paid by the insurer to the designated beneficiaries.
A no medical life insurance policy offers two basic types of plans: Level premium and limited benefit plans. The limited benefit plan offers only fixed premiums for as long as the individual lives. This means that even if the insured gets ill during the period of the plan, the family won’t get any fixed payment to replace the loss of the insured’s income. The premiums are however adjusted periodically according to the risk of the insurance company and the financial conditions of the company.
One of the most attractive features of these no medical exam life insurance policies is their simplified issue concept. Under this concept, the applicant doesn’t need to submit medical reports to the insurer. Instead, the applicant is only required to fill out an application stating his or her personal and health information. Based on this information, the insurer can set the amount of the premiums. Furthermore, under this type of plan, the applicant won’t need to submit any other information like credit score, age, or debts to the insurer.
Another advantage of these no medical exam life insurance policies is that the premiums are charged based on the applicant’s health at the time of application. Premiums also increase with age, so this means that young applicants may find it cheaper to buy this type of policy compared to those who are older. In addition, because there is no medical exam, the risk of fraud by applicants who exaggerate their health status is eliminated. As the best no medical exam life insurance for accelerated underwriting due to its simplified issue term life policies are known to have a lower rate of premiums than other types of policies.
No medical exam life insurance policies are also known to be more convenient to maintain. Under this plan, the insurer will only pay a specified amount for each month. In addition, the premium amount will stay constant throughout the entire life of the policy so there are no annual charges to deal with. On the other hand, with traditional life insurance policy, adjustments made to your premium amount may result to annual increases and decreases.
Finally, no medical exam life insurance policy is known to be more cost-effective compared to other policies. With these plans, the insurer does not have to invest on any medical services for the insured. For instance, during a physical examination, if the applicant experiences any abnormal health condition that may affect his or her capacity to work, the costs of the services will not be paid. With no medical exam life insurance policy, the insurer has the liberty to set its own fee schedule for the use of medical services. However, the applicant must be fully informed about the cost implications before opting for this type of plan.
There are other benefits that no medical insurance policy may offer. For instance, if the insured has a high deductible rate, it may allow the person to enjoy more benefits. Also, no medical exam life insurance policies allow the applicants to choose the time when they submit their application. The policy holder is then free to submit the application whenever he or she chooses. In addition, if the applicant has a high credit score, it may allow him or her to skip the medical exam and thus enjoy instant coverage.