No-exam life insurance is a type of life insurance that waives the need for applicants to go through the common medical exams that most life insurance companies use. Life insurance companies are all about risk, and part of that risk comes with one’s personal health. Medical exams are used to assess an applicants health conditions to see what risk level they are. For younger individuals with no pre-existing medical conditions and overall good health, this is not much of a concern, but for older people with serious health issues, a medical exam may mean they will be denied coverage.
Applicants who do poorly on a medical exam may be still be able to get a life insurance policy, but it may come at an extremely high cost. This is why no exam life insurance polices are a good option. There are a few common types of no exam life insurance including simplified issue, guaranteed acceptance, and graded benefit.
Simplified life insurance will not require a medical exam, but medical information and history will still be required in the application process. Guaranteed acceptance is exactly what it sounds like, you are guaranteed acceptance when applying for a life insurance policy and you do not have to go through any medical exams or provide any personal or family health history. Graded life insurance is a life insurance policy that is designed for applicants who are later in life or medically infirm. It does not require a medical history or a medical exam to qualify.
Before applying for no exam life insurance it is important to understand the difference between it and a normal life insurance policy. The application process is often much quicker than normal life insurance, often being finished within a month and a half. It is important to understand that because there is no medical exam required, it is going to be more expensive than traditional life insurance. This is because of the unknown to the insurance company.
This unknown means more risk to the insurance company. People who purchase no exam life insurance policies often do so because they would face denial if they attempted to apply for a traditional insurance policy. If they have something in their medical history they are trying to hide, the insurance company has no idea what it is because no exam was taken, thus a higher risk to them. No exam life insurance is also different from traditional life insurance for those who are nearing the end of their life. With traditional life insurance policies, many would not cover the cost of funeral or burial, but with no exam life insurance the coverage will cover this expense.
No exam life insurance is a good way to ensure that you get the life insurance policy you need, without any added stress wondering weather or not you will be granted coverage. It is more expensive but does not require you to share all of your medical history, which can be beneficial to those who have something to hide. If you are considering a no exam life insurance policy, you can contact your local life insurance agent to find a policy that fits your needs.
Read this for more about the pros and cons of no-exam life insurance.
Life Insurance No Medical Exam
Life insurance with no medical exam is a specialized type of insurance offered by some insurance companies. The biggest advantage to this type of insurance is obvious; no medical exam life insurance means there is no medical exam requirement in the application process. This can be very appealing to anyone who has been denied coverage from a traditional life insurance policy because of a pre-existing illness or injury. Insurance companies are all about calculating risk. It is very common for people with pre-existing conditions that increase the risk for the insurance company to have to pay a benefit.
People with high cholesterol, high blood pressure, diabetes, sleep apnea, and people who smoke often are denied coverage or given a policy with a very high premium. With a no medical exam life insurance policy people can avoid these high rates. Life insurance policies that do not require a medical exam tend to be approved in a much shorter period of time than traditional life insurance policies. This is because medical exams add to the process, you have to wait for an exam, and then you have to wait for the results to be reviewed by the insurance company.
There are a few forms of no-medical exam life insurance. First there is a guaranteed issue life insurance, which guarantees acceptance. Graded Benefit Life insurance is another option that usually involves a few health related questions, but no direct medical exam. The terms are a bit more complicated and acceptance is no guaranteed, but many people who might not qualify for a traditional policy still qualify for this option. Lastly, there is the simplified issue life insurance, which requires applicants to do a health survey. The application is underwritten and no blood test or exam is required.
No medical exam life insurance is much like any term life insurance policy; it provides financial assistance for your loved ones in the event of your death. No exam insurance costs a bit more than medically underwritten policies. Insurance companies usually assess their risk based on medical evaluations and perceived life expectancy, but without a medical exam they cannot weigh this risk. This means that there is a general risk for the insurance company, assuming that the people applying are applying because they do not want to take a medical reason for fear of revealing a pre-existing condition. It is simple, providing coverage without a medical exam comes with a risk, which translates to higher premiums.
The biggest advantage of a no-medical exam life insurance policy is the no exam, but there are some additional benefits. You get to avoid the doctor’s office, they can provide higher amounts of coverage, and the application process is short and simple.
If you are shopping for life insurance coverage to protect your family’s future, but are struggling to get accepted by a traditional policy then you may want to consider a no-medical exam life insurance policy. Whether you are struggling to get coverage or if you just want to avoid the medical exam then you may want to contact your local insurance agent for more information.
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