A little over 10 years ago, I applied for life insurance for the first time. I’m not talking about that life insurance that you automatically get from an employer just for working for them, some simple term package. I’m talking about going to an insurance agent and applying for insurance.
To get the best rates for life insurance a person usually has to undergo a physical medical evaluation. Sometimes it’s as simple as an interview and sometimes you have to go into the doctor and get a full physical. The basic idea is that if you are in poor health, odds are that you will not live as long and therefore the insurance will pay out a claim faster and your rates should be high enough to cover that claim within the time frame of your life expectancy. It sounds a little cold, but it is business and basically when you take out life insurance you are betting on your own life expectancy yourself so its not appropriate to get to bent out of shape with the insurance companies allowing you to place that bet.
Like many things in life insurance companies are working to try and make things a little bit simpler. They are starting to offer no exam life insurance options where people can just apply and receive an approval instantly, typically through an online form entry and have their application process relatively quickly and efficiently and automatically. Now from the insurance companies perspective they are sacrificing a little bit of precise information which means the risk increases. To cover their risk they must offer or charge that is higher prices.
As consumers our demand for instant gratification and instant solutions when we purchase things online from insurance to apply for a home equity loan or a mortgage even or a dozen other things are often times traded off with the cost or value of the item that were looking to get if we take a little bit more time with my kids a better deal of what we wanted instantly we pay a premium.