No Medical Exam Life Insurance Plans
A no medical exam life insurance policy is one that is guaranteed to be approved and offer coverage to the applicant as soon as he or she meets minimum qualifications and pays the first premium. There are no exams, no tests, and oftentimes no waiting periods prior to coverage being issued.
In most cases, no exam life insurance is issued to those who are in the senior market, or to individuals that are not considered insurable for more traditional types of life insurance coverage. These individuals are likely to have been previously turned down for a life insurance policy due to health issues.
When applying for life insurance coverage, most insurance companies will require that an applicant answer questions pertaining to their current health status – and in many instances, an individual will also need to have a physician perform a medical examination prior to being approved in order to determine any pre-existing health issues.
For many who possess adverse health conditions, it may seem impossible to obtain life insurance coverage. However, a no exam life insurance policy could provide the answer to purchasing quality coverage regardless of one’s advancing age or current medical status.
How Do No Medical Exam Policies Work?
Policies can be either a term or a whole life plan. Term life insurance is considered to be “temporary” coverage in that the policy will only stay in force for a certain number of years. Once the time period on these policies has elapsed, the insured will be required to re-qualify for coverage. Due to the fact that they will be older than they were when they originally signed up for insurance, it is likely that the premium on the new policy will be higher than the previous plan.
Whole life insurance is a type of “permanent” coverage. With whole life, as long as the policy holder continues to pay the premium, the policy will stay in force. In addition, the premium on a whole life insurance policy will not increase, regardless of the insured’s increasing age or any health conditions that may arise after he or she obtains coverage. This may seem like a better option than term life insurance, but because the policy is guaranteed for life, the monthly premiums are much higher, and the policy value limits are much lower, than those of term life. Whole life no medical exam insurance policies are often referred to as burial insurance plans.
Because it is not necessary to wait for the results of a medical examination, insurance coverage is typically issued much more quickly than more traditional types of life insurance policies. In some instances, a decision can be made in as little as 72 hours.
How Much Coverage is Provided?
The coverage provided in your no medical exam life insurance policy depends on a number of factors (how much insurance do I need link). Term life insurance policies will be able to provide a higher coverage amount, generally ranging from $100,000 to $500,000 depending on your needs and qualifications.
Whole life insurance policies are typically issued to those who are older or who could not qualify for an insurance policy that requires a medical exam. These policies offer benefit amounts that range between $1,000 to $25,000.
The best way to determine how much insurance you need is to speak with a licensed professional who can help you determine cost, coverage, and any other personal needs. Call (888) 953-9816 to speak with an agent who can prepare a custom policy and provide you with a free quote.
What is the Difference Between No Medical Exam and Traditional Life Insurance?
In most instances, the actual workings of a no medical exam life insurance policy are similar to more traditional coverage. For example, once the policy is in force, a named beneficiary (or beneficiaries) will receive the stated amount of death benefit proceeds upon the passing of the insured.
The primary difference between the two types of coverage is the way in which they are underwritten, or examined by the insurance provider. Policies that do not require a medical exam typically have higher premiums. This is due to the risk that the insured has medical conditions and shorter life expectancy.
Even though these plans have higher premiums, a no medical life insurance policy may be the only option for an older applicant with health issues that would otherwise deem him or her as uninsurable.
What are the Key Advantages of Owning a No Medical Exam Life Insurance Policy?
A no exam policy may not be the ideal solution for everyone. However, there are some key advantages to such policies for certain individuals. First, these policies are much simpler in terms of application procedure, typically requiring the applicant to answer just a few health related questions.
This type of policy can be a real benefit to anyone who has a pre-existing health condition. It gives loved ones peace of mind knowing that funeral expenses will be covered by a funeral insurance policy should the insured pass away in the near future.
Another benefit to these types of policies is that coverage can be issued quickly. Oftentimes, a life insurance policy that requires a medical examination can take up to 6 weeks to be approved. Yet a no medical exam policy may be approved within just a few days or less in some cases.
The ease and speed of applying for a no exam policy make it an obvious choice for many.
How Does One Qualify for Coverage?
Qualifying for a no medical exam life insurance policy is much simpler than qualifying for traditional life insurance coverage. As with any type of life insurance coverage, the applicant’s date of birth, gender, Social Security number, height, and weight will be requested.
The application will also typically consist of some basic health-related questions such as:
- Are you taking any prescription or non-prescription drugs? If so, for what reason?
- In the past 8 to 10 years, have you used any tobacco products or any other product that contains nicotine? If yes, please list all products and frequency of use.
- Have you ever been diagnosed and/or treated for an immune system disorder, disease or condition?
- Do you have a family history of depression, mental illness, heart disease, diabetes, kidney disease, cancer, or any other genetically inheritable disease?
- Are you waiting for a diagnosis or have you been advised to have a surgical operation, diagnostic test, or medical evaluation that has not yet been completed?
- In the past 2 years, have you been hospitalized or evaluated in an emergency room or immediate care center for a chronic illness requiring ongoing treatment or care by a physician, or have you participated in any hazardous activities or extreme sports?
- In the past six months, has any illness or injury caused you to work fewer hours at your regular job than you usually work (if applicable)?
- In the past 8 to 10 years, have you been treated for any of the following conditions:
- Cancer
- Allergies
- Jaundice
- Hepatitis
- Chest pains
- High blood pressure
- Anxiety
- Dizziness
- Intestinal bleeding
- Paralysis
- Sexually transmitted infection
- Ulcer
- Colitis
- Memory loss
- Eye disorder
- Asthma
- Diabetes
- Anemia
- Arthritis
- Chronic fatigue
- Stroke
- Diverticulitis
- Stress
- Emphysema
- Tuberculosis
- Skin disorder
- Sciatica
- Stomach pain
- Blood in stool or urine
- Gout
- Endocrine or hormonal disorder
The policy may be underwritten in one of the following manners:
- Guaranteed Issue – Those who are applying for guaranteed issue coverage will only need to answer a few basic medical-related questions on the application. The individual’s medical records are not typically requested. This means that the underwriters’ decision on acceptance for coverage is based solely on the answers to the questions on the application.
- Simplified Issue – Applicants who are applying for coverage via simplified issue will typically be required to answer some more in-depth questions regarding their medical history. In addition, it is possible that the insurance company may also request the applicant’s medical records in order to determine the individual’s current health condition.
Will Alcohol or Drug Use Affect the Chance of Qualifying for a No Medical Exam Insurance Policy?
When applying for coverage, there may be a question on the application for coverage inquiring as to whether the applicant has been convicted of or pled guilty or no contest to a felony, misdemeanor, reckless driving, DUI, or DWI.
In addition, if an applicant smokes marijuana, the insurance provider will typically classify that activity as illegal drug use. While this does not mean that an applicant will be disqualified for life insurance altogether, the policy would likely need to be a full medically underwritten plan.
Who Are Good Candidates?
Younger individuals, as well as those who are in good health, are typically not good candidates for no medical exam life insurance coverage – at least in most cases. This is because these individuals are likely to qualify for more traditional coverage at a lower cost for a comparable amount of death benefit.
One may, however, be a good prospect for no exam coverage if they currently possess a health issue that would deem them as uninsurable for other types of life insurance. Such issues may include certain types of heart conditions or an advanced stage of diabetes.
Other good prospects for this type of life insurance coverage may include those who:
- Are fearful of needles. There are many people who would prefer not to go through a medical exam due to a fear of needles or other medical equipment that may be used to conduct such an examination.
- Do not have time to take a required medical exam. Because of extensive travel or other job related commitments, there may be no time available for a life insurance applicant to complete the required medical exam. Therefore, a no medical exam policy could provide the ideal solution.
- Need coverage quickly. Because no medical exam life insurance policies can oftentimes be approved within a very short period of time, an individual who needs coverage quickly – or who may simply want to obtain the peace of mind that life insurance can provide – should consider this form of insurance.
How Much Does a Policy Cost?
The premiums on no exam policies tend to be higher than those of more traditional life insurance coverage with a comparable benefit amount. The premiums for these plans are typically based upon the life expectancy of the insured, and it is common for applicants of no medical exam policies are older and/or have adverse health conditions. These individuals generally have a shorter life expectancy, and thus statistically require the insurer to pay out a death benefit sooner.
Where Can You Purchase a No Medical Exam Life Insurance Policy?
There are several ways to go about purchasing a policy. There are many reputable carriers that offer this type of coverage. Therefore, contacting a local insurance agent or broker is a good place to start.
Today, with the convenience of the Internet, there are also many online sources where an applicant for coverage may go to obtain policy quotes, as well as to complete the application process.
Regardless of whether coverage is purchased in-person or online, it is essential to first understand how no exam life policies work, as well as the many benefits that they can provide – especially to those who may not otherwise qualify for life insurance coverage.
Taking the Next Step
Prior to applying for any life insurance policy, it is important to have a good idea of the amount of coverage that will be needed, as well as the amount of policy premium that can comfortably fit into one’s budget. In addition, it is recommended that applicants research potential insurers in order to determine the company’s reputation as to its claims paying ability and financial strength.
