Getting a No Exam Life Insurance Policy
Going to the doctor’s office for a physical exam is a typical procedure to undergo before receiving most insurance policies. Visits to the doctor’s office are usually slow and painful processes. Not to mention that the processing times of many labs that are used by doctors is at least a few days. If you want life insurance quick, these few days can seem to drag by and last an eternity. It is for these reasons that it goes without saying that a medical exam can be extremely time consuming and costly.
Fortunately there is a life insurance policy that does not require a medical exam.
A no medical exam policy is far less time consuming and is a great option for those who are in need of a quick policy. It is especially appealing to someone who may fear that may have a new illness that will be uncovered in a medical exam.
These types of insurance are very unique and are therefore not best suited for everyone. No exam life insurance policies have gained a lot of popularity in the last few years. It is for this reason that someone considering this type of insurance knows all of the pros and cons associated with it.
The Importance of Life Insurance
Purchasing life insurance is a task that many people continue to put off until “tomorrow”, or they avoid buying a life insurance policy because they are “still young” or “in excellent health”. They think that nothing can happen to them, and they put off life insurance shopping until they are 50 years old. Unfortunately, we hear of countless stories of people like this dying unexpectedly and leaving their families with thousands of dollars in debt and unpaid expenses.
Finding an adequate plan should be a major goal in securing your families future. Don’t leave your family with mortgage payments, car payments, student loans, and much more. Having a life insurance policy will give your loved ones enough finances to get them through their time of grieving without adding the added stress of having to scrape together the money.
Types of No Exam Life Insurance Policies
Just like every other type of life insurance, no exam policies come in a variety of forms. Each of them has different pros, cons, and stipulations that come with them. There are four popular types of no exam life insurance in the marketplace, simplified issue, guaranteed issue, graded death benefit, and level final expense.
Simplified issue is the type that is usually thought of as a “no exam policy”, while there are no health exams, you still have to answer a medical questionnaire and they have stricter health qualifications. These are great for people in decent health that don’t want to take a physical.
Guaranteed issue life insurance is very similar, but minus the health questionnaire. So that means that there is no medical exam and no questions asked. Anyone with any health can buy a guaranteed issue life insurance policy. The only restrictions on guaranteed issue is there are age limits.
Graded death benefit policies are just what they sound like. The plan doesn’t start out with full benefits in the first couple of years. Every year they will increase until they reach the full benefit of the policy. There is nothing wrong with these policies, but you should realize that if anything were to happen to you in the first few years, you aren’t going to receive 100% of your policy amount.
Level final expense plans are a little different than the other plans. These plans are typically permanent policies, which means that you’ll be giving a premium rate that you will pay for the rest of your life. These burial insurance plans typically have smaller policy amounts with less strict questions.
Each of these types are good in their own way, but simplified issue is the most common one. Spend some time deciding which plan will work best for you. Because we don’t know your specific circumstances, we can’t tell you the perfect plan for your situation, but one of our trained agents can!
Difference Between Traditional Term and No Medical Exam Life Insurance
There really is not a whole lot of difference between a regular term life policy and a no medical exam policy. Both policies are similar in structure in that there is a beneficiary that receives the money after a claim if the policy specifications are met. One guideline that stretches across almost every type of policy is that the policyholder’s death must be within the time period of the policy. From just about every standpoint, a no medical exam insurance policy is identical to a traditional life insurance policy, minus the medical exam, of course.
When it comes to life insurance, every individual is different, and what may be best for one person may not necessarily be best for another. Something that should be considered with a no medical exam is the additional cost associated with the premium. Life insurance companies charge more for the premium when they take on additional risk.
Usually, a medical exam is a way of mitigating a lot of the risk but since there is no medical exam they have to find ways to compensate. Additionally, they consider other factors that may not be otherwise considered with a standard life insurance policy such as lifestyle and age. The benefit that comes with the additional cost though is guaranteed coverage as well as the convenience of immediate coverage.
These no exam life insurance policies aren’t for everyone, and many people purchase one of these policies without doing their homework, which is a huge mistake. While no exam policies are perfect for some people, it can cost other people thousands of extra dollars in insurance premiums.
A lot of people that purchase a no exam life insurance policy are people that assume that they wouldn’t be able to be approved for a traditional life insurance policy. These are people that have some health condition such as seeking life insurance for diabetics, or maybe are just in poor physical health. While no exam policies can be perfect for people with poor health, a no exam policy isn’t their ONLY option. Most people can still receive affordable rates even with less than perfect health, but if they can’t get affordable quotes with a traditional policy, you can still get life insurance through a no exam policy.