Life Insurance With No Medical Examination.
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For a variety of reasons, some applicants desire to purchase life insurance with no medical exam or even with no underwriting whatsoever (“no questions asked approval”).
Sometimes, it is simply a matter of processing the policy quickly, perhaps, in order to use it as collateral on an SBA loan. Other times, it may be a simple dislike of taking a medical exam, possibly because of a fear of needles.
But it could also be a matter of not wanting to bother with a complex process over a very small amount of insurance to be purchased or because a preexisting medical condition would likely disqualify the applicant.
Most life insurance policies require you to sit through a medical examination involving blood tests, urine tests, a physical, and more. A relatively small segment of the life insurance market offers an alternative with no medical checkup. This creates an added risk for the insurer, since there could be a hidden health condition, and the premiums are correspondingly higher.
Often, the premiums on no medical check life insurance will be 40% to 50% higher. In fact, they can even be as much as three times as high, but using a skilled insurance broker to locate the best deal can greatly reduce the cost. Additionally, cost varies widely based on the exact type of policy, your age, and your overall health as revealed in medical questions and in a review of your medical history.
After appropriate medical reviews are conducted, you can likely secure a term life policy with a 5 to 30 year term in the range of $250,000 to $500,000 of coverage, without ever taking a medical exam. With underwritten exam policies, you can never be sure you will pass the exam and be approved, but it is much easier to get approved for no-exam insurance.
Insurers are able to ascertain your health status, to a degree, without an exam due to their access to public records. Other than with Guaranteed Issue, which involves no medical exam or questions, you will provide information to the insurer yourself in a written questionnaire and possibly again in an over-the-phone interview. Next, the insurer can access your MIB (Medical Information Bureau) data. They may also look at your Pharmacy Database and Motor Vehicle Records.
While you can buy a number of different policy types without a medical exam regardless of age, some of them do have age restrictions. Even when they don’t, there are reasons why certain age groups prefer particular types of policies. Below, we group the major no-exam insurance types by age groups:
Simplified issue term life is usually offered to everyone below the age of 65. It may have terms of 10 to 20 years and coverage of $50,000 to $350,000. Simplified issue comes with a fixed-for-life cost and death benefit.
Simplified issue may require a two-year waiting period during which an investigation will be made into cause of death, before claims are paid out above the paid-in premiums.
Level death benefit whole life also has a fixed-for-life cost and death benefit, but you are able to apply for it up through age 80. These policies will normally be smaller, only in the $5,000 to $50,000 range. Even those with poor health can often qualify.
Rapid decision senior whole life is normally available from around age 65 to 85 and has even smaller benefits, on average, of about $10,000 to $25,000.
Two types of policy are not necessarily age-specific but are often used by those in difficult circumstances. The first is graded benefit whole life, which is often resorted to by those with poor health histories like heart trouble or Type 1 diabetes. The first two years of benefits are reduced (“graded”), and the cost is rather high.
The last type of no-exam insurance to mention is called “Guaranteed Issue” (GI). This means you can buy the policy at any age or health condition and are “guaranteed” approval without a health exam or even a health questionnaire. No benefits are paid the first two years, but premiums are paid back with interest.
While the policies listed just above are available to most seniors, those over 70 tend to buy the smallest policies, looking only to cover funeral expenses and take care of final expenses for their family.
Medical bills, debts, taxes, probate court costs, and more will be covered as best as possible by such policies.
Can I Buy No-Exam Insurance Online?
Indeed, you can purchase most no-exam insurance over the Internet. Sometimes, you will get approved within 15 minutes or even immediately after submitting your application. Other times, it might take a day or more. It depends on the company. The relatively fast approval can be done because health records can be pulled up and viewed by the person handling your application in real time. The lack of any health exam greatly speeds up the process.
Can I Get an Instant No-Exam Insurance Quote?
Yes, you can often get instantaneous no-exam policy quotes online. Just fill out a short questionnaire giving such information as full legal name, date of birth, gender, height and weight, type of policy, and amount of coverage desired. You can quickly collect a group of quotes this way and compare to find your best option.
Two “Alternative Strategies” Some Use to Get Fast Insurance
If you are in good health but just want to get insured very quickly, you can buy a simplified issue no-exam policy while waiting for your traditional insurance policy to process. This is not a good general practice, but some use this method “in a pinch” to prevent going without any life insurance during the interim.
A second “tactic” some use is to buy “temporary insurance” from a traditional underwriting kind of policy. This will require you to be in good health and taking a “para-med exam,” but not a full medical exam as usually required.
The policy will be strictly limited, but it will be cheaper than simplified issue no-exam policies. Temporary insurance is really a “close relative” of no-exam policies that is superior if you can get it and if you don’t mind the para-exam.
Buying insurance that does not require a health exam is faster, easier, more convenient, and less likely to result in an application being turned down. However, such policies do limit coverage amounts, cost more in premiums, and sometimes require waiting periods for pay-outs/full coverage. Thus, these policies have a “niche” in the insurance market but are not for everyone.
The best way to find the right policy if you are a trying to qualify for no medical exam life insurance is to compare.
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