Having a good solid life insurance plan in place can be an essential component of nearly any financial plan. This is because, if the unexpected should occur, life insurance proceeds can help to ensure that those you love and care about will be able to move forward financially. This can especially be the case if the insured is a primary income earner.
Life insurance proceeds can be used for any number of reasons – including the payoff of large debt (such as a mortgage), the replacement of ongoing income for a surviving spouse and / or children, and for paying off the high cost of a funeral and other related final expenses.
For many people, qualifying for the life insurance that they need and want is typically just a process of filling out an application for coverage, obtaining a medical exam (where a blood and urine sample will be required), and waiting to hear back about approval.
Other applicants for life insurance, however, may not have such an easy time in getting qualified. This could be due to having some adverse health condition, or it may be because the individual works in a dangerous occupation. The good news is, though, that even if you have been turned down for a life insurance policy in the past, you may be able to qualify for a no exam policy or a guaranteed issue policy.
What is No Exam Life Insurance and How Does It Work?
No exam life insurance is a type of life insurance coverage where the applicant for the policy is not required to go through a medical examination as a part of the policy approval process. Oftentimes, there will also be few – or no – medical questions that are asked on the application. Because of this, it can be easier to qualify for the policy that you are looking for.
Because the applicants for no exam life insurance are usually considered to be a higher risk to the life insurance company, the amount of the death benefit that is offered will usually be in the upper range of $50,000.
These policies will also cost more due to the added risk to the insurer. In fact, depending on the policy and the insurance carrier, the premium that is charged could be as must as two or three times higher than a comparable policy that is medically underwritten.
So, does it make sense to purchase no medical exam life insurance? Under certain circumstances, yes, it does. There are a few reasons why certain individuals may want to consider this type of life insurance policy.
3 Reasons to Purchase a No Exam Life Insurance Policy
When comparing life insurance policies, you could be a good potential candidate for no medical exam coverage in the following situations:
1) It is Easier to Qualify for a No Exam Life Insurance Policy
One of the biggest advantages to applying for no medical exam life insurance is the fact that these policies may allow someone who has an adverse health issue to obtain the coverage that they need – even if they have been turned down for traditional life insurance coverage in the past.
Because there is no medical exam to contend with, someone whose health is not ideal will not need to worry about the life insurance underwriters closely examining their health and then denying them for coverage. Going this route can also help you to avoid having to spend an inordinate amount of time gathering medical records and other data that the insurance company may wish to review before they provide you with an answer about coverage.
So, if you have a chronic health issue that has deemed you unable to obtain an individual life insurance policy – and, you are also unable to secure life insurance coverage via an employer-sponsored group plan, then you may want to turn to a no exam policy.
These qualification criteria don’t only apply to those applicants who may have an adverse health condition, though. No exam life insurance may also be an option for people who work in “risky” occupations and / or who participate in risky hobbies such as skydiving, scuba diving, or other activities that a life insurance company may deem to be dangerous.
In these instances, because there are often fewer questions in general for the applicant to answer, going with a no medical exam policy could be a way for those with risky lifestyles to obtain coverage – especially if they are unable to go about it via a traditionally underwritten option.
2) Approval Can Be Much Faster Than a Medically Underwritten Plan
Another benefit to no medical exam life insurance coverage is the fact that these policies can oftentimes be approved much more quickly than a medically underwritten policy. This is because there are no blood and urine samples to wait for testing on – and, in some instances, there may not even be any health related questions for the insurance company underwriters to review regarding the applicant.
With that in mind, a no medical exam life insurance policy can typically be approved within just days – or sometimes even more quickly – as versus the several weeks (or more) that it can take for a medically underwritten policy. So, if you need coverage quickly – such as for the approval of a loan or other similar purpose – then going with a no exam life insurance plan may be a good option for you.
3) There are No Needles to Worry About
In some cases, an applicant for no medical exam life insurance may be perfectly healthy – but they just don’t like the thought of having to undergo a medical examination. In fact, there are some people who are just downright terrified of the thought of giving blood.
The good news here is that if you are in this category, you are not alone. The Center for Disease Control (CDC) estimates that about 20% of the general population has at least some amount of fear that is associated with needles and / or injections.
With that in mind, as the name implies, a no exam life insurance policy will not require you to undergo the paramedical examination – which means that you won’t have to worry about rolling up your sleeve, turning your head, and feeling woozy afterward.
There can be some additional benefits, too, such as not having to fast for several hours until your blood work is complete, and not having to take time out to meet with a paramedical professional, either at your home or other location.
What Types of No Exam Life Insurance Coverage are Available?
When purchasing a no exam life insurance policy, you will typically have the option to choose from either a term or a permanent policy. With term life insurance, you will have coverage for a specific number of years, such as 10, 15, 20, 25, or even 30. During that time, your premium amount will typically be locked in. Because there is no cash value component that is associated with term life insurance covered, the premiums for this type of life insurance will usually be less than that of a permanent plan.
Permanent life insurance offers both a death benefit, and a cash value, or savings, component. This type of insurance will usually remain in force for the remainder of your lifetime – provided that the premium continues to be paid.
The cash value that is in a permanent life insurance policy is allowed to grow on a tax-deferred basis. This meant that there are no taxes due on the gain unless or until the funds are withdrawn.
Cash value is allowed to be either withdrawn or borrowed for any reason that the policyholders decides. This can include the payoff of debt, the supplementing of retirement income, and / or even for taking a nice vacation. These funds are not required to be paid back. However, at the death of the insured, the amount of any unpaid cash value balance will be deducted from the amount of death benefit that is paid out to the policy’s beneficiary.
The premium amount that is charged on a permanent no medical exam life insurance policy will usually be locked in and guaranteed not to increase throughout the life of the policy. This is the case, even as the insured’s age increases and / or regardless of the health condition of the insured.
How is the Benefit Paid Out in a No Exam Life Insurance Policy?
Regardless of whether you go with a term or a permanent policy, when you purchase a no medical exam plan, it will be important that you know several things about your coverage. For example, not all of these policies will pay out their death benefits in the same way.
In some cases, it may be required that the insured own the policy for at least two years in order for 100% of the stated benefits to be paid out in the case of death. In this case, should the insured pass away during year one or year two, then only a stated percentage of the benefit may be paid out. In other cases, only the amount of the paid-in premiums will be returned. Therefore, be sure that you know how – and how much – of the death benefit will be paid.
Where to Get the Best Quotes on a No Exam Life Insurance Policy
While no exam life insurance may not be right for everyone, there are people who are good candidates for this type of coverage – and, in some cases, an individual may not be able to provide for those that they love in any other way.
When you are shopping for no medical exam life insurance coverage, it will be important that you get several different quotes. That is because, just as with other types of products and services that are available in the marketplace, not all life insurance carriers will price their products in the same manner. This can be true, even for the very same type and amount of no medical exam coverage.
In comparing different policies and premiums, it could take a great deal of time to go from one life insurer to another. A better way to find the best coverage and premium would be to work with a company or an agency that has access to more than just one life insurance carrier. In doing so, you will be able to much more quickly compare plans, benefits, and premium cost – in an unbiased manner – and from there, you can determine which will be the best option for you.
If you are in the process of looking for a no medical exam life insurance policy, we can help. We work with many of the top life insurance carriers in the marketplace today – and we can assist you with obtaining all of the important details that you would need to make a well-informed purchasing decision.
We can do so for you very quickly and easily – all directly from your computer – and without the need to meet in person with a life insurance agent. Therefore, if you are ready to move forward, then just simply fill out the form on this page.
Should you find that you still have any questions at all concerning purchasing no medical exam life insurance coverage, then please feel free to contact us directly. We can be reached via phone, toll-free, by dialing 888-389-8676. Our experts are happy to walk you through policy information, as well as obtain quotes for you on a wide variety of no exam life insurance coverage.
We understand that the purchase of life insurance can be somewhat overwhelming. There are so many variables to incorporate in the process – and you will want to make sure that you are obtaining the right about of protection for your loved ones’ needs. But the good news is that today, you have many options that may be available to you in terms of life insurance coverage. So, contact us today – we’re here to help.