Life insurance no exam is convenient and fast. You start getting coverage within two days, while an ordinary life insurance policy takes weeks to complete the formalities. Yet, very few people opt for this no exam policy because they cost at least three times more. Let us peek into the workings of the life insurance as a whole to understand what life insurance no exam is and why they cost more.

Life insurance, as we all know is a form of risk management. Purchasing an insurance policy entitles us to transfer the risk of a loss from one entity to another in exchange of a premium. When we buy a life insurance policy, we willingly undertake a guaranteed small loss to prevent a possible devastating loss. In other words, we pay premiums to prevent the financial hardship that our death may bring upon our family.

The procedure for purchasing a life insurance policy begins with receiving life insurance quotes. Life insurance rates are based on these quotes. Anyway, receiving quotes is not big deal. You can do that on line and it will take just a few minutes. Ideally, you should receive quotes from different sources, but if you go through a life insurance broker, you can get them all at once because a broker is attached to many life insurance carriers.

Fill up the quote form you will find on the website of your broker and once you click the appropriate button the broker’s search engine will start checking the numerous insurance plans available in the market to find out the ones that are most suitable for you. Within minutes, you will find them displayed on your screen. Take your pick or consult the broking house at the contact details supplied on the homepage.

Now, you will have to fill up an application form. Once that is done, a representative from the broker will call you and arrange for medical check up. It will not cost you any thing. On top of that, the test will be arranged at a place and the time of your choice. However, many are put off by the very thought of medical exams and opt for life insurance no exam.

If you really have no medical problem, never opt out of medical tests. With a higher term life insurance cost, life insurance no exam is not really as tempting as it looks like. In fact, most of us will hate to have to pay thousands of dollars extra each year for the same amount of protection that we would be getting, had we sat for medical examination that one time. What do these tests generally include? They include:

1.    Taking measurement of your height and weight

2.    Taking measurement of your blood pressure and pulse

3.    Taking of blood samples to check cholesterol, glucose, protein and HIV

4.    Taking of urine sample to check glucose, protein, creatinine and cocaine

5.    Enquiries related to your medical history

6.    Enquiries related to your family’s (your parents’ and siblings’) medical history

7.    Enquiries related to your life style and habits

Now, are they really worth avoiding? Any way, how do these tests lower the term life insurance costs? The answer is simple. Although the life insurance carriers calculate the cost of the insurance with the help of something called mortality tables, whose three main variables are age, gender and tobacco use, the health and the family medical history of the policyholder are also taken into account while calculating the actual price of the insurance. The face value of the policy and the coverage term also influence term life cost largely. Any way, let us stick to medical exams only.

If you opt out of the medical examination, the carriers have no way of knowing your actual state of health. They will have to take your word for the truth, which as you can understand, they never will. Instead, they will assume that you may have some terminal illness and may not live as long as it is expected of your age. So, they will charge accordingly. You cannot grudge that. They are here to do business after all.

When you opt for medical exam, actuaries, employed by the life insurance carriers have something to work on and they can fix the cost of insuring you more or less accurately. This helps the underwriters to fix term life insurance cost more or less accurately and you have a reasonable term life insurance rates.

Life insurance no exam is actually for those persons who will otherwise be declared uninsurable if they sit for medical tests. If that is not your case, do sit for the medical exam and enjoy the protection at low term life insurance cost.