Why a Non-medical Life Insurance is Actually a Practical Investment
Having life insurance is a reasonable and necessary investment to secure a future for your loved ones. The problem is that for most life insurance policies, getting approved takes a lot of time and effort. Companies require thorough testing before they make a reasonable offer.
However, not all life insurance policies require rigorous medical testing. For people who are found “high risk,” there is such a thing as non-medical life insurances available to them.
What are Non-medical Life Insurances?
As the name suggests, non-medical life insurance is a type of insurance that requires no medical testing for one to be issued a policy. This kind of life insurance is an attractive policy for the elderly who are usually denied typical life insurance policies due to their age and health condition. For insurers to pay death benefits, the insured must have died during the policy term, which is usually just 2 to 20 years long. Thus, they are sometimes known as term life insurance policies.
Considering that there is no medical testing, the process is short, but the application forms are highly detailed. You will have to answer lengthy application forms about your health and personal information to give insurers a full idea of what you do and health history.
Often, there is a short approval time. Because insuring you is a high risk, the tendency is you will end up paying a higher premium every month for a relatively small face value insurance policy.
What are the Kinds of Non-medical Life Insurance Plans?
The two kinds of non-medical life insurance policies are:
For this type of policy, you get generic and straightforward questions to determine within 48 hours or even less if you are qualified. Approved policies are given graded death benefits, which means that if the insured passes earlier such as within two or three years, he would get fewer benefits than if he had died a later date. The longer time you pay for your premium, the higher the chance you get full death benefits.
This type of non-medical life insurance policy is more intrusive and would ask more in-depth questions about your health, lifestyle, and medical condition. There would be many factors to consider in determining your qualification. It would typically be less expensive than a guaranteed issue but still more expensive than regular medical life insurance. As such, high-risk individuals are less likely to be approved.
Guaranteed issue is deemed best for those who have health conditions, while simplified issue is better for people who prefer quick, no fuss insurance coverages.
Is a Non-medical Life Insurance Better for You?
It depends on your needs. Medical life insurance has longer term policies, lower premiums, and reasonable coverages. On the other hand, non-medical life insurance policies are faster to purchase and require a simple application, but it is more expensive and only meets short term needs. One is not necessarily better than the other. What matters is that you consider all factors to create an informed decision.
If you are considering getting non-medical life insurance for yourself, let Makes Cents help you. You can read more about the Best Australian Life Insurance Companies here.
Have you considered switching your life insurance policy? Use our Life Insurance comparison service today.