Get Insurance Coverage with No Physical or Blood Test? What’s the Catch with “No Exam” Life Insurance?
Article by Patrick Barry
Improvements in technology have led to ‘shortcuts’ for many of life’s tedious processes. Perhaps you’ve noticed an increase in ads for “no exam” life insurance that don’t require a doctor’s visit or a blood test. In the traditional process, you make an application for life insurance and the company sends out a doctor or nurse to your home or office to assess your health. This typically involves blood pressure testing, a blood draw for the lab and other somewhat personal and intrusive tests. Then you wait for lab results and paperwork, sometimes for up to 2 months. The insurance company is doing this to understand the risk of issuing your policy and, presumably, offering you a ‘fair’ premium.
Some of the new “no exam” life insurance policies simply cover the risk of your policy with inflated premiums. This assures that the company issuing the policy will make a profit, but disregards the health of the insured population. These quick issue policies can be a refreshing change from the standard 2 month average waiting period to get a traditional life insurance policy. But the catch for these “no exam” life insurance policies may be in the high premium.
Sophisticated technology has allowed a number of companies to offer “no exam” life insurance policies with significantly lower premiums, approaching those of traditional fully health screened policies. These sophisticated insurance firms have the prospective client do a phone interview with an agent, verify some key health questions and give the agent permission to access their computerized prescription records. Then the insurance agent, aided by a computerized risk assessment program, finds the best policy and insurance issuer for you. In many cases, this is a quick issue, “no exam” life insurance policy with a competitive rate that can be issued in minutes. In all cases the agent can show you the premium difference if you wanted to wait up to 2 months and go through the medical exam.
One company that offers the new technology and a choice of major insurance issuers is America Direct, a Fidelity Life Association company (www.americadirect.com). America Direct can issue the Fidelity RD Term policy (Rapid Decision) with computer aided risk assessment or place your policy with a number of highly rated traditional insurance companies. Well informed consumers can then understand the trade-offs and make intelligent insurance decisions.
For more information on “no exam” life insurance visit http://www.americadirect.com
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