When is a non-medical application typically used?

A non-medical application is typically used for relatively small insurance amounts because it streamlines the application process by eliminating the need for a medical exam. This type of application allows insurers to assess the risk based on personal information provided by the applicant, along with other basic risk factors, rather than requiring detailed medical evaluations.

This approach is especially advantageous for individuals seeking smaller coverage amounts, as it can expedite the approval process and make it more accessible for those who may not want to undergo medical testing. This method is less suited for large amounts of insurance because higher coverage levels generally necessitate a more thorough underwriting process, including medical exams, to ensure the insurer can accurately evaluate the risk involved. Therefore, using a non-medical app for smaller amounts aligns with industry practices designed to balance efficiency and risk management effectively.