It sounds pretty good; you get your insurance sorted with a minimum of fuss, no doctors appointments or blood tests and no uncomfortable medical history questions. So if you can organise your life insurance without all this fuss why would anyone bother to use insurance companies that subject you to medical tests and will only offer you cover pending the results of your medicals?.
All insurance companies start with your application and assume the worst and price their premiums accordingly. By answering questions and undergoing medicals, you are eliminating or reducing the potential risks, this make you a more attractive risk to the insurance company and they in turn are happy to offer reduced premiums as a result. The difference in premiums between no medical insurance and medically underwriting insurance for a fit and health individual can be enormous, sometimes 2 to 3 times cheaper. Now that's worth a trip to the doctor.
The biggest "trap for young players" is the "Pre-existing Conditions" clause that is almost always included in no medical insurance. This clause effectively means that in the event of claim, if the insurance company deems the sickness or injury to be related to or as a result of a medical condition or injury that existed before the policy was taken out, then you claim may not be paid.
The automatic acceptance of the insurance gives you a false sense of security, For example, let's assume you have a heart condition that has existed prior to taking out the no medical insurance policy. You take out your policy feeling comfortable that come what may you have adequate insurance in place. A short time later you suffer a heart attack and lodge a claim. Depending on the circumstances, the insurer may deny you the claim, deeming that the heart attack was the result of you weak heart cause by your pre existing condition. So the no medical insurance leaves a huge amount or uncertainty. It's only at claim time that you find out what you are covered for. That's too much uncertainty for me personally. When I first get my insurance in place I what to know what I am an am not covered for. Insurance companies that require you to answer questions and undertake medicals will provide you with a result when you first apply for the insurance, so you know where they stand and if you are not happy with the cover they offer, you can apply elsewhere.
No medical insurance does have a place as an "insurance of last resort". If you are unable to get cover elsewhere due to health issues, it provides an excellent alternative to having no cover at all.
Medically underwritten insurance may provide a number of additional benefits included in the policy. No Medical insurance competes in the market by providing a convenient and easy to obtain product whilst possibly sacrificing some premium competitiveness and additional features. Medically underwritten insurance polices compete on the premiums and features they offer. If you are fit and health, medically underwritten insurance will provide you with cost effective and feature rich insurance cover.
Following the completion of a Bachelor of Commerce and a Diploma of Financial Markets, Scott Graham has been in the personal risk management Business for a number of years here in Australia. With clients Australia wide, he is experienced in providing personal insurance to all walks of life.All insurance companies start with your application and assume the worst and price their premiums accordingly. By answering questions and undergoing medicals, you are eliminating or reducing the potential risks, this make you a more attractive risk to the insurance company and they in turn are happy to offer reduced premiums as a result. The difference in premiums between no medical insurance and medically underwriting insurance for a fit and health individual can be enormous, sometimes 2 to 3 times cheaper. Now that's worth a trip to the doctor.
The biggest "trap for young players" is the "Pre-existing Conditions" clause that is almost always included in no medical insurance. This clause effectively means that in the event of claim, if the insurance company deems the sickness or injury to be related to or as a result of a medical condition or injury that existed before the policy was taken out, then you claim may not be paid.
The automatic acceptance of the insurance gives you a false sense of security, For example, let's assume you have a heart condition that has existed prior to taking out the no medical insurance policy. You take out your policy feeling comfortable that come what may you have adequate insurance in place. A short time later you suffer a heart attack and lodge a claim. Depending on the circumstances, the insurer may deny you the claim, deeming that the heart attack was the result of you weak heart cause by your pre existing condition. So the no medical insurance leaves a huge amount or uncertainty. It's only at claim time that you find out what you are covered for. That's too much uncertainty for me personally. When I first get my insurance in place I what to know what I am an am not covered for. Insurance companies that require you to answer questions and undertake medicals will provide you with a result when you first apply for the insurance, so you know where they stand and if you are not happy with the cover they offer, you can apply elsewhere.
No medical insurance does have a place as an "insurance of last resort". If you are unable to get cover elsewhere due to health issues, it provides an excellent alternative to having no cover at all.
Medically underwritten insurance may provide a number of additional benefits included in the policy. No Medical insurance competes in the market by providing a convenient and easy to obtain product whilst possibly sacrificing some premium competitiveness and additional features. Medically underwritten insurance polices compete on the premiums and features they offer. If you are fit and health, medically underwritten insurance will provide you with cost effective and feature rich insurance cover.
