Who Should be Using Non Medical Life Insurance?

Have you ever noticed that life insurance commercials on television always talk about non-medical life insurance? So what’s the deal with that?


Non-medical insurance is probably the easiest life insurance to sell as a broker or advisor because the application process is greatly simplified over fully underwritten life insurance. The term fully underwritten insurance means that all medical exams and prequalification tests are done prior to a policy being issued, as well as premiums being paid. To be very honest, these underwriting tests are not something that are fun to do by any means. The usual application process for fully underwritten life insurance usual takes up 3 month. The process requires an application be filled out, and in certain cases; a phone interview with an attending nurse, blood and urine samples, an Attending Physician Statement and verification of what is called the MBI (Medical Information Bureau).


The MIB is a database of health information collected by insurance companies on all applicants of fully underwritten insurance. This database gets verified and updated during the application process by all life insurance companies. The attending physician statements are questions submitted by the insurance company to your family doctor requesting specification on any health condition. Answering these inquiries have become standard practice in the health industry.

That being said, in the event of a claim on life insurance, these tests have to be done for a payout to occur. This is simply to minimize fraud during the application process. As per insuring your life with a given amount of coverage would it not be logical to do all the required tests prior to paying premiums? Non-medical life insurance has its place in the field; it is an alternative when fully underwritten insurance can not be obtained due to medical reasons.


This being a mortgage insurance blog, ask your mortgage agent or broker about the underwriting process regarding the insurance they offer you. Then ask an insurance broker or advisor about that same coverage. This answer, my friend, will be a good indicator to whether you a using the right mortgage professional.


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