Life Insurance with No Medical Exam
There are several different types of life insurance products that will allow you to get coverage without a medical exam. This might sound great to those who don’t want to go through a paramedical exam but is it worth it? There are two main tradeoffs for not having to go through the medical exam – higher rates and lower coverage amounts. Because the insurance company gathers less information about you, they consider you a higher risk than if you went through the full underwriting process. Here are some important facts you should know before you consider no exam life insurance.
When it comes to the more popular no exam products, you have several options. Each is a little bit different in underwriting requirements and features.
Simplified Issue Term or Universal Life – These policies usually require a full application but no medical exam. The term policies usually have the standard term options such as 10, 15 and 20 year terms. Some policies will offer coverage amounts to $350,000 depending on the company. In most cases you must answer “no” to all of the medical impairment questions on the application in order to qualify.
Simplified Whole Life – These policies allow for level premiums and death benefits for the life of the policy. No medical exam is required and some companies only ask a few medical questions. These policies are usually limited to coverage amounts of between $5,000 and $50,000.
Graded Benefit Whole Life – These policies will not pay the full death benefit if you die within the first two years of owning the policy, but rather a graded benefit. The premiums stay level for the entire life of the policy and the underwriting criteria for these policies is very liberal, including no medical exam. Coverage amounts are usually limited to $25,000.
Guaranteed Issue Life – These policies do not require you to answer any medical questions or take a medical exam and you cannot be turned down for health reasons. They are usually reserved for older applicants. The premiums stay level for the life of the policy and coverage amounts are limited.
Along with fewer underwriting requirements, the decision on many of these policies is fast. Some companies will approve applications immediately while others will take 48 hours to 2 weeks (if no other information is required). As mentioned previously, these policies have a much higher cost than fully underwritten life insurance and lower coverage amounts. They should only be considered under the right circumstances.
One important thing to remember is that even though you are not going through a full underwriting, the insurance company will still go to third party sources to get more information on you. For almost all no exam policies, the insurance company is still going to verify your history with the Medical Information Bureau (MIB), Motor Vehicle Records and the Pharmacy Database. That is why it is always important to answer all questions on a life insurance application truthfully and in as much detail as possible when required.
As you can see, there are several options that you have when considering no exam life insurance. The best product will depend on your particular situation, so it is best to talk it over with an independent agent who can shop several different companies to find the best fit for you. If you are interested in a no exam policy, we would welcome the opportunity to show you some options. Please feel free to give us a call at (888) 687-9444 or email us at info@archstoneagency.com if you have any questions.
Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients. We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage. Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com. You can also visit our website at www.archstoneinsurance.com.
