No Exam Life Insurance - are We Paying Attention?

<h1>No Exam Life Insurance - are We Paying Attention?</h1>Author: <a title="Donald Lusan" href="http://www.articlesbase.com/authors/donald-lusan/27086.htm">Donald Lusan</a> Is no exam life insurance a new thing? If you read some of the writings on the subject you would think it is. The fact is that the idea is not new at all. Life insurance companies have been issuing policies on a non medical basis for a very long time. The reason is that they can hold down costs by doing so. You may ask how can a life insurance achieve lower expenditure by issuing a no exam life insurance policy. Let us try to get the thinking of the decision makers in these companies.

What Does It Normally Cost To Issue A Policy?

The first thing we have to consider is the life insurance agents commission. In many companies that can be more than the first years premium. The life insurance company has to pay administrative staff and clerical staff. The efficient companies break down the cost and determine what miniscule percentage is applied to each actual policy. They must do an inspection report. In other words they have to check out the applicant. If they need to have a medical done they have to pay a nurse, a para-medic or a doctor to do this examination. They may need an xray and blood work in addition to the actual medical depending on what the examiner uncovers. In some cases a second or third medical examination may be needed.

People Are Living Longer Today

The life insurance companies, after much research and after watching trends over a long period of time, have come to the conclusion that people are living longer today than ever before. The no exam life insurance policy has become common practice under certain conditions.

It used to be that young people would get most or all their insurance without needing a medical. The obvious reason is that they would more than likely have a long life ahead of them. People up to age 50 or 55 would qualify for some no medical exam life insurance but usually a smaller amount than the 20 year old. The reason is the shorter life expectancy.

Today people are living longer thus the life insurance companies can extend the availability of no exam life insurance to age 60. People take better care of their health and as a result more life insurance is approved at older ages.

The life insurance companies have eliminated much of the cost for issuing a policy. Clerical and administrative cost still exist but the cost of doing an examination is eliminated. An inspection report is still required. For some of those companies issuing no exam life insurance policies based on an online application the agents commission is eliminated. We can only conclude that this new way of doing business is a good deal for all concerned, the life insurance company and you the buyer.

Let us be absolutely clear on one thing these policies cost the consumer no more online than had you bought them from an agent.About the Author: For additional information on no medical exam life insurance go to: <a target="_blank" href="http://www.lifeinsurancehub.net/no-exam-life-insurance.html">http://www.lifeinsurancehub.net/no-exam-life-insurance.html</a> 
 
For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable. 
 
Donald's website is: <a target="_blank" href="http://www.lifeinsurancehub.net">http://www.lifeinsurancehub.net</a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/insurance-articles/no-exam-life-insurance-are-we-paying-attention-360559.html" title="No Exam Life Insurance - are We Paying Attention?">No Exam Life Insurance - are We Paying Attention?</a>

Is no exam life insurance a new thing? If you read some of the writings on the subject you would think it is. The fact is that the idea is not new at all. Life insurance companies have been issuing policies on a non medical basis for a very long time. The reason is that they can hold down costs by doing so. You may ask how can a life insurance achieve lower expenditure by issuing a no exam life insurance policy. Let us try to get the thinking of the decision makers in these companies.

What Does It Normally Cost To Issue A Policy?

The first thing we have to consider is the life insurance agents commission. In many companies that can be more than the first years premium. The life insurance company has to pay administrative staff and clerical staff. The efficient companies break down the cost and determine what miniscule percentage is applied to each actual policy. They must do an inspection report. In other words they have to check out the applicant. If they need to have a medical done they have to pay a nurse, a para-medic or a doctor to do this examination. They may need an xray and blood work in addition to the actual medical depending on what the examiner uncovers. In some cases a second or third medical examination may be needed.

People Are Living Longer Today

The life insurance companies, after much research and after watching trends over a long period of time, have come to the conclusion that people are living longer today than ever before. The no exam life insurance policy has become common practice under certain conditions.

It used to be that young people would get most or all their insurance without needing a medical. The obvious reason is that they would more than likely have a long life ahead of them. People up to age 50 or 55 would qualify for some no medical exam life insurance but usually a smaller amount than the 20 year old. The reason is the shorter life expectancy.

Today people are living longer thus the life insurance companies can extend the availability of no exam life insurance to age 60. People take better care of their health and as a result more life insurance is approved at older ages.

The life insurance companies have eliminated much of the cost for issuing a policy. Clerical and administrative cost still exist but the cost of doing an examination is eliminated. An inspection report is still required. For some of those companies issuing no exam life insurance policies based on an online application the agents commission is eliminated. We can only conclude that this new way of doing business is a good deal for all concerned, the life insurance company and you the buyer.

Let us be absolutely clear on one thing these policies cost the consumer no more online than had you bought them from an agent.

For additional information on no medical exam life insurance go to: http://www.lifeinsurancehub.net/no-exam-life-insurance.html

For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.

Donald's website is: http://www.lifeinsurancehub.net

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Related Articles
Related Q&A

Article Source: http://www.articlesbase.com/insurance-articles/no-exam-life-insurance-are-we-paying-attention-360559.html

Latest Insurance Articles
More from Donald Lusan

How to Qualify For Life Insurance if You Have been Diagnosed with Depression

By: Christopher Beard | 10/07/2009
Life Agents can assist you by directing you to those carriers and carrier guidelines that will give careful consideration to your specific criterion and measure it against their current sub-standard table ratings in order to get you approved at a favorable rate. All carriers have their own table ratings for every impaired risk case.

How Can You Obtain, Accurate Term Life Insurance Quotes Online?

By: Christopher Beard | 10/07/2009
Both Insurance carriers and marketers have been offering quoting aggregators as a way to both trim down cost of advertising and reach consumers as they begin there online research and shopping. So the big questions is: Are the premiums provided from these quoting websites accurate and are these rates you can realistically expect to obtain for your specific age health and weight class

Find the Best Premium Low Cost Auto Insurance - Insurance Quote

By: Bryan Burbank | 09/07/2009
When you own a car there are many expenses involved any insurance can be one of the most expensive that you have. It is important that you search online for an auto insurance rates that you can afford. It is not hard to find good coverage but you would need to spend time and search for a quote that is in your budget. You do not want to get into an accident and have no auto insurance because it can cost you everything. If the accident is your fault and you do not have proper coverage you can be

Why Get a Term Life Insurance Policy?

By: Bill Gatton | 09/07/2009
Life insurance is an important part of any family's sense of security, and not having it in case of an accident can leave your entire family more devastated than they would have been if you had been covered. Depending on age, financial stability, and health a term life insurance policy may be the choice for you.

Health Insurance Care Reform 7/9/09 EasyToInsureME

By: Www.easytoinsureme.com | 09/07/2009
The Council passed an amendment to the Health Occupations Revision Act that included a definition of "the practice of medicine." As passed, the provision does not contain language opposed by the health insurance industry that would have arguably included utilization review. Also deemed approved was a rule permitting those enrolled in the District's Employee Benefits Program to enroll a domestic partner and children of the domestic partner under family coverage, provided the employee pays 25 per

Choose Life Insurance as an Investment

By: Habibulla Antule | 09/07/2009
Now days, life insurance policies are very much popular for the investment purpose. This is the reason more and more people are opting for it. In particular reason, the life insurance policies are tax favored way to comfortable retirement, funding for children's education and orderly transition of family businesses in the future.

Takeaway Insurance: No Takeaway Can Do Without It

By: Nasreen Haque | 09/07/2009
Insurance is one of the necessary evils of living in a modern, developed nation. As much as you might hate paying those premiums month after month, just one mishap or unforeseen circumstance can make all your payments worth it. If you own a takeaway restaurant, you should definitely look into takeaway insurance.

You can't ignore buying Shop Insurance

By: Nasreen Haque | 09/07/2009
Shop insurance, or commercial insurance as it is commonly called, is a type of insurance that is specified to cover the material of a business or shop. Commercial insurance or shop insurance can cover anything ranging from business owned auto possessions to the buildings that the business takes place in

Cheap Life Insurance - When You Need Very Cheap Life Insurance

By: Donald Lusan | 06/07/2009 | Insurance
Cheap Life Insurance. Perhaps you recently got married, or you just had a new addition to the family. You probably just purchased your first home or maybe you just started a business. These are all reasons why you may need some life insurance and you want the least costly policy you can get.

Term Insurance - Are You Certain You Want Term Life Insurance?

By: Donald Lusan | 28/06/2009 | Insurance
Do you really need term insurance? There are other options, so, is term life insurance for you? Some people are convinced there are no other choices. Ever consider why this type of life insurance is so favored? Let us take a look at some of the most popular term policies and see whether or not they would fit your unique situation.

Permanent Insurance Explained - Permanent Life Insurance Types

By: Donald Lusan | 22/06/2009 | Insurance
Permanent insurance, also referred to as permanent life insurance, affords the policy owner the opportunity to accumulate a little cash in addition to providing a death benefit in the event of premature death.

Life Insurance Calculator - Determine How Much Life Insurance You Need

By: Donald Lusan | 12/06/2009 | Insurance
A life insurance calculator, or life insurance needs calculator, is one of the most invaluable tools when you have in mind to buy life insurance.

Life Insurance Quotes - Quotes And Application Procedure

By: Donald Lusan | 08/06/2009 | Insurance
Why would you get life insurance quotes online? You could call in an agent and get some good information and proceed to buy your policy if you see something you like. You could contact an Independent Agent or a Broker who are exposed to many companies and a wide range of policies. Most people, however, get their life insurance quotes online then proceed to either buy their policies there and then or they contact the carrier they are interested in and have them send out a representative.

Low Cost Term Life Insurance - The Most Used Low Cost Policies

By: Donald Lusan | 04/06/2009 | Insurance
We all want to buy low cost term life insurance. It is just the wise thing to do. I was recently having a casual conversation with one of my neighbor about life insurance and was surprised to see the amount of premium he was paying for term insurance

Life Insurance - Do Intelligent People Buy Life Insurance?

By: Donald Lusan | 31/05/2009 | Insurance
I have been in the life insurance business for more than 40 years and have heard many uninformed people criticise life insurance. It has even become quite an industry to discount the merits of owning a policy.

Mortgage Life Insurance - Buying Your First Home

By: Donald Lusan | 07/03/2009 | Insurance
Consider mortgage life insurance when you buy your first home. Everyone will likely agree that purchasing your first home is one of the most important decisions you will likely make. Many thoughts go through your mind at this time.