Many people want to get cheap insurance policies because of the rising cost of living. Another reason for the increased demand for term life insurance with no medical tests is the prevalence of natural disasters in many parts of the country. There are also other threats such as terrorism attacks, which prompt many people to take insurance cover. ‘Life insurance with no exams’ is a policy available for all people regardless of their age and health situation. This policy is also a convenient way of getting a policy, because of its short processing time.
This does not mean that there are no questions which the potential policy holder does not have to answer some questions. The insurance company needs to know something about their potential client. They may ask for information such as hobbies, family medical history, age, exercise habits and gender among others. This information is highly crucial for the insurance company to decide the premium rates. Many companies insure low-risk people, so any unhealthy habits may automatically disqualify anyone who wishes to get this policy. The companies also prefer young applicants over older ones. The underwriting process helps the company to decrease the risk of paying out insurance benefits.