Life insurance is essential for anyone who wants to help protect their family’s future. However, there are many reasons why Americans are not purchasing life insurance, one being the requirement of a medical exam.
Fortunately, there are a few ways you can still purchase coverage and protect your family with no medical exam. However, there are a few things to know beforehand.
Who can benefit from a no-exam policy?
No exam life insurance coverage could be a good fit for those looking for a small amount of coverage, or even additional coverage on an already existing policy. Additionally, common people who can benefit from a no-exam policy may include:
- People with the fear of needles, blood, etc.
- Those without time or money for an appointment
- Those who need coverage immediately
Types of no-exam life insurance
There is a good variety of life insurance policies that do not require exams. Policies can vary, but the main no-exam coverage may be:
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Simplified issue term life
- Death benefits in the $5K-$1M range
- Can apply between ages 18-80
- Term periods can range from 5 to 30 years (rate guarantee period)
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Simplified issue universal life
- Death benefits in the $5K-$1M range
- Can apply between ages 21-65
- Juvenile products available
- Cost and death benefit fixed for life
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Level death benefit whole life
- Death benefit and cost is fixed for life
- Can apply up through age 80
- Smaller death benefits in the $250K-$500K range
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Graded benefit whole life
- Provide lifetime coverage at a fixed rate
- Meant for clients with more serious health history
- Potentially higher cost and benefit can go up to give years
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Rapid decision senior whole life
- Death benefits in the $5K-$50K range
- Usually purchased by seniors between ages 50-85
- Underwriting guidelines/requirements may vary in leniency
- Rapid decision
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Guaranteed issue
- No health questions asked
- Cannot be turned down from coverage because of medical reasons
- Usually purchased by people in poor health or advanced age, where they can’t qualify for other lower cost coverage
- Death benefits typically available in the $5k-$25k range
No-exam approval process
If you don’t take a medical exam, the insurance company still needs a way to assess their risk of insuring you. The company may do a few verification screenings such as a phone call, medical questionnaire, and a full review of your medical history.
Advantages and disadvantages of a no-exam life insurance policy
As with any insurance policy, there are advantages and disadvantages. Depending on your situation, one may outweigh the other.
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Advantages:
- Skipping having your blood drawn
- Potential faster approval time
- Convenience
- Less scrutiny
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Disadvantages:
- Limits on coverage amount
- Possible waiting period for full coverage
- Higher cost
- End of coverage age
A no-exam life insurance policy may be a good fit for some, but it still requires heavy consideration and research. We encourage those seeking coverage to speak to a licensed insurance Agent before making a purchase to help navigate the complexities of the industry.
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