Updated April 7, 2021
Reading time: 5 minutes
Sometimes, life insurance, with all its complexities, asks consumers to go the extra mile with a medical exam. This extra nudge can make people want to throw their hands up and the towel in. But there are more hassle -free life insurance products on the market than ever before. No-medical-exam life insurance policies won’t break the camel’s back and will provide the same protections and benefits as most traditional policies.
If your priorities are to keep it simple, finding the right no-medical-exam life insurance with Insurify is effortless. Insurify will help you find the right life insurance policy that fits your budget while keeping your search simple and painless.
Like all insurance, life insurance insures a risk of a loss. Life insurance is a form of financial protection that protects the loss of your current and future earnings due to your passing. Your family and loved ones may depend on your income to keep their standard of living. Life insurance ensures your loved ones can pay final expenses and unpaid debt and protects them from hardship.
Since life insurance protects your life’s assets, your lifespan and the risks to your life are determining factors in your monthly premiums and whether your policy is approved. Insurance companies require you to answer health questions and take a medical exam to determine your insurability. Medical conditions, such as high blood pressure, may prevent your insurance application ‘s acceptance.
The underwriting process is where premiums and your eligibility for a life insurance plan are determined. Underwriters examine the probability of death or illness for people of all ages. Life insurance companies want to avoid selecting applicants who are seeking out insurance due to serious illness. Illness increases the risk of loss of life; therefore, insurers may request a medical exam.
Most fully underwritten policies require a medical exam and your medical records. Insurers request that you answer a health questionnaire where you give your age, weight, and height and list any health issues. A medical professional is sent to your home at the insurance company ‘s expense to verify your information and take a urine sample and sometimes a blood sample.
Many people have life insurance through their employer. This type of policy is a group life insurance policy. Group life insurance policy premiums are based on the risk of the entire group, not the individual, and usually do not require individual medical exams or health questions. Most group life policies are a form of annually renewable term life insurance.
A young person with less medical history and who is in good health may want to consider a no-medical-exam life insurance policy for its convenience. An older person or a person with health issues may want to consider no-exam insurance because they do not qualify for traditional life insurance. There are types of life insurance to address these issues.
Types of policies that do not require a medical exam include simplified issue life insurance, guaranteed issue life insurance, and no-medical-exam term life insurance. But the advantages of no-exam life insurance also come with a price. Underwritten life insurance policies follow guidelines to classify risks; when risk is not evaluated, it must be offset in some way.
A preferred risk is an applicant in excellent health and has a lower premium. A standard risk is an acceptable risk and has a standard premium. A substandard risk is a high-risk applicant with higher premiums. Since there is no underwriting in the application process of a no-exam life insurance policy, most companies classify applicants as a substandard risk.
Some no-exam life insurance policies may have lower coverage amounts than underwritten policies. And some may require a waiting period before the payout of the death benefit to counterbalance the absence of underwriting. Let’s examine the types of no-exam life insurance policies, their characteristics, and the people they are best suited for.
Simplified issue life insurance
A simplified issue life insurance policy is typically available to people 45 and older. Policies do not have a waiting period but have higher premiums, and the amount of coverage is lower. Because the premiums are higher and coverage lower, it is best for people who have medical conditions that preclude them from other policies.
Instead of taking a medical exam, applicants for a simplified issue life insurance policy must answer medical questions, and insurers may check their medical records. Although the application process is easier, applicants may still be turned down. If you don’t mind paying a higher premium and want immediate coverage, consider this type of policy.
Guaranteed issue life insurance
Guaranteed issue life insurance does not require you to take a medical exam or answer health questions. Coverage amounts are typically lower than a simplified issue policy, and the premiums are even higher. Some policies require a waiting period, usually between two and three years. If you pass away before the waiting period ends, beneficiaries will receive the amount of the premiums you paid plus interest.
The age range for a guaranteed issue life insurance policy is usually between 40 and 80 years old. Coverage options usually reach a maximum of $25,000, and almost everyone is accepted. These policies should be used as a last resort. If you are diagnosed with a condition and do not already have a life insurance policy in place, consider this type of policy.
Both simplified issue life insurance and guaranteed issue life insurance are considered final expense insurance. Final expense insurance policies are whole life policies, which are a type of permanent coverage. But there are term life insurance policies that do not require a medical exam, and the pricing is comparable to a traditional term life policy.
Term life insurance coverage covers an individual for a specified amount of time, whereas permanent life insurance lasts the policyholder’s entire life. Traditional term life insurance policies go through the underwriting process and may require a medical exam. No-exam term life insurance policies do not require a medical exam, and coverage is immediate.
No-medical-exam term life insurance offers benefit levels that are higher than no-exam whole life insurance policies. Coverage amounts can be as much as millions of dollars, and term lengths are up to 30 years. Term life insurance policies are usually less expensive than permanent policies, and this holds true for no-medical-exam term life insurance.
Applicants for these policies must answer medical questions, and insurer s may check medical records. The age range is usually between 20 and 60. No-medical-exam term life insurance is a good option if you are under 60 and in relatively good health. These policies are tailored to individuals who want to purchase life insurance with as little hassle as possible. If approved, coverage is immediate.
What may be the best life insurance policy for you may not be the right policy for someone else and their loved ones. A 25-year-old with no health issues and who wants a life insurance policy quickly does not have the need for a last-resort life insurance policy. With this in mind, consider the rating of the life insurance company when you’re looking for no-exam life insurance.
Independent rating services, such as A.M. Best, examine the financial status of life insurance companies. Insurers are rated based on their financial strength and ability to pay claims. Factors considered in the ratings include the life insurance company ‘s cash on hand, capital and their ability to raise capital, and their ability to finance their business plans.
With Insurify, finding the right no- medical-exam policy is easy. You can get a life insurance quote from the best life insurance companies that offer no-medical-exam life insurance. You’ll be on track to having coverage in no time. Apply online, chat with a representative, and get immediate coverage.
The benefits of no-exam life insurance include getting last-resort coverage and getting a policy as quickly as possible. In the world of life insurance, where it seems as though we’re winding down a long road that we must endure for the benefit of our loved ones, it may look like there is no end in sight, especially when the insurer requires a medical exam. No-medical-exam term life insurance policies are a fast and affordable way to purchase life insurance and avoid the hassle.
Both term and whole life policies offer no-medical-exam options. Whole life policies are more expensive than term life. But more applicants are accepted for no medical-exam whole life policies because no-medical-exam term life is geared toward relatively healthy people.
No-medical-exam term life insurance does not have a waiting period before benefits are paid out, and coverage is immediate. Though guaranteed issue life insurance is approved and delivered quickly, there may be a waiting period of two to three years before benefits can be paid.
Reasons to get a no-exam policy include medical conditions that prevent you from getting a traditional policy, being diagnosed with an illness when you don’t currently have life insurance, and wanting to receive your policy as fast as possible without bothering with a medical exam.
Use Insurify to help you find the right no-medical-exam life insurance policy, whatever the reason. Whether you have medical conditions or would like to get insured as quickly as possible, Insurify will introduce you to the best life insurance carriers that can help you reach your personal life insurance goals.
Aissa Martell is a licensed insurance producer in the State of New York. She is a creative writer and has been freelance writing for five years. She’s happy to share her knowledge of the insurance industry and its products.Learn More