Is Life Insurance Without a Medical Exam Right For You?
No exam life insurance is a popular form of life insurance that allows you to get coverage without undergoing a medical exam. Traditional life insurance policies require an exam as part of the application process, but there are many reasons why someone would want to skip it.
Reasons for wanting to skip a medical exam for life insurance include:
● You’re afraid of doctors or needles
● You’re worried you’ll be denied coverage based on your exam
● You don’t have time
● The application and approval process goes much quicker without an exam
● When you skip the exam, you can apply entirely online
There are two main types of no exam life insurance:
● Guaranteed Issue
● Simplified Issue
You can get free quotes for both types of policies here.
Guaranteed Issue (GI) is a type of whole no exam life insurance that offers approval to almost everyone, regardless of health. The only reason why someone wouldn’t be approved is if they are over the age limit (usually 80 or 85, depending on the carrier). Because a GI policy doesn’t require any health information, there is no underwriting involved. In some cases, approval can be granted immediately. In others, the wait is just a few days.
The downside of a life insurance policy that isn’t underwritten is that insurers have no way of assessing their risk — therefore, the cost of the monthly premiums is always higher than policies that are partially or fully underwritten. The exact cost of each individual’s policy is determined by age, weight, gender, and coverage amount.
Another result of having a life insurance policy that isn’t underwritten is that these policies often come with a graded death benefit, which means that if the policyholder dies within two years of purchase, only a portion of the death benefit is paid out. This is another way insurers protect themselves against risk. GI coverage usually only goes up to $25,000 or $50,000.
Simplified Issue (SI) is a type of term no exam policy that requires applicants to provide some health information, but not a lot. Underwriters assess whatever information is provided and calculate the premiums based on statistics. As a policy that involves a small amount of underwriting, SI policies are usually more affordable than GI policies. They also offer greater coverage, usually up to $500,000 or $1,000,000.
As a type of term life insurance, SI policies cease to be valid once the term is over. Many policies come with the option for renewal, but the renewal rates are usually higher. In addition to considering age, weight, gender, coverage amount and term, SI policies take your current state of health, medical history, and family medical history into account. Therefore, not everyone can be approved.
If you’re unsure whether no exam life insurance is for you, here are 3 things to consider.
Serious illnesses like cancer or chronic diseases like diabetes don’t make you uninsurable for life. If you can demonstrate that the treatment has been successful or that you are managing your condition successfully, there is a chance you can qualify for a traditional life insurance policy.
However, if your condition isn’t well-managed, there is a high chance that you will be rejected for a policy that requires a medical exam. In this case, a no exam option is a good way to get the coverage you want.
Applications for traditional life insurance policies can take weeks or even months to be approved. Many people can’t, or don’t want to, wait that long. Some people can’t wait that long because they need life insurance quickly, either for a divorce settlement or small business loan. These people would do well with no exam life insurance, since approval is granted within a few days, if not immediately. People who don’t want to wait that long may simply not have the patience. They know that if they need to wait weeks to get an answer, they will delay signing on the dotted line, and the risk just isn’t worth it.
No exam life insurance is the answer for people who have a strong fear of checkups and/or needles. A typical medical exam for life insurance involves a medical professional checking your vitals, a blood test, and a urinalysis, among other things. If you are uncomfortable with any of this, you can bypass it and get no exam life insurance. No doctors, no needles, no hassle.
If the answers to the above questions are yes, you’re fortunate to have no exam life insurance as an option. Convenient and quick, no exam policies can give you peace of mind knowing that your loved ones will be taken care of in the event of a tragedy.