Life Insurance With No Physical Exam Explained
While getting life insurance is vital, the process of acquiring a policy can be so demoralizing for most people as it may be seen to be too long and nerve-wracking. A large number of individuals do not get the chance of enjoying a life insurance coverage, just for the mere fact that the process of getting one rubs them the other way.
No exam life insurance policies are some of the best types of insurance there are. They allow you to skip the endless number of tests and even better, take a shorter time to get approved when compared to other types of insurance.
Simplified Issue Life Insurance
Simplified life insurance coverage has a straightforward process. It gives the individual applying for a sense of relief as he or she gets to go through a short process. The applicant gets an insurance coverage without having to answer a lot of health questions, no medical records are demanded, neither is a medical exam undertaken and there is no telephone interviews. The insurance approval will majorly be based on a few specific databases that depict an individual’s viability for insurance coverage. The insurance carriers do have the right to collect all medical history on you from doctors, MIB(medical information bureau).
Some of the simple Questions Asked When Applying for Simplified Issue Life Insurance:
- Are you a smoker?
- Do you currently live in a hospital or long-term-care institution?
- Have you been diagnosed with a terminally ill?
- Do you have AIDS or HIV?
- Have you been disabled or receiving disability benefits for more than 30 days in the last 12 months?
- Have you in the past 24 months used narcotics, amphetamines or any controlled substance?
- Have you received chemo or radiation therapy for cancer in the past 12 months?
Talking about numbers, the length of the life insurance maybe ten years, fifteen years or twenty years. There is an option for a term to a hundred or whole life policy, whereby the policy provides lifetime coverage at a guaranteed fixed rate. The coverage amount ranges from a thousand dollars to one hundred and fifty thousand dollars.
Why Get Life Insurance With No Exam
There are many reasons why you will need to get a no exam life insurance policy. Below are some of the best reasons why no exam life insurance policy is good for you.
With an insurance coverage that does not partake in medical examination, one gets the opportunity of not worrying about whether the current state of one’s health or even medical condition will affect greatly the overall approval of the policy. On the other side when one is made to undertake a medical exam, there is a high chance of a medical condition being discovered that may render you unworthy of an insurance policy.
It is of great importance to know the stress that comes from dealing with the scheduling of appointments, spending your precious time collecting medical reports and awaiting test results. With no exam policy, things have been made easy. One can do the application online by filling a form at the convenience of your home.
Same Coverage Benefits as Other Types of Insurance Policies.
The difference between a no exam policy and a traditional one is the fact that there are no medical exams and a chance that the coverage might be a little higher when it comes to the matter of price. Apart from that, you will get the same types of coverage that are offered in the market.
Individuals that suffer from diabetes or pre-existing conditions and the ones that can not avoid living without an occasional enjoyment of smoke, can gain a lot from this policy. Usually, these two groups are blinded sided by traditional coverage for they are viewed as high risk. More companies are taking up the narrative of trying to help more as they can with the introduction of no exam policy in their rosters.
Pros and Cons of Getting a Simplified Issue Life Insurance
No medical exam
One of the great advantages is that there is no medical exam. Without having to go through the medical exam portion of the underwriting it typically makes application period shorter and hastens the process.
There is no delay in getting feedback on your application. This attribute makes simplified issue life insurance pop out when compared to other life insurance covers. You gain the ability to get an insurance policy within a matter of days or weeks. Other insurance policies normally delay the process and as a result, it takes months for one to get covered.
Full face value
The full payment of the death benefit is usually instantaneous. The death benefit is available and accessible from the time coverage is activated.
Flexible payment options
You are bombarded with options of paying your premiums on an annual, semi-annual, monthly or quarterly basis. Though this varies from insurer to insurer.
The fact that you get insured without a clear picture of your health information, the insurer covers you with the knowledge that you bring with you a great risk. Therefore the more the risk at hand, the higher the premium. When compared to the more traditional way where medical information is key, the insurer gets a clear picture of who is being insured and as a result, the premium is less than the simplified issue life insurance premiums.
Age factor drawback
As one gets to age, the policy becomes more expensive as compared to a younger individual. When young one is seen as strong and healthy but as you get older, you become prone to some more diseases rendering you as a high-risk individual.
For the simplified issue policy, there is a limit to the amount you are insured for. In addition to this, there are some few features on the policy at hand that might call for extra coverage and thus brings about more financial payouts.
Guaranteed Issue Life Insurance
Guaranteed life insurance policy is one of the easiest insurance policies to qualify for. As the name suggests, guaranteed life insurance is guaranteed for most applicants. This is because this policy does not require a medical examination to qualify for. And this means that most people, including those with health and medical conditions, can qualify for the policy.
Since they are easy to qualify for, guaranteed issue life insurance policies usually have very high premiums when compared to other life insurance products. This is because there is a high risk of insuring an unhealthy individual. While the insured pays high premiums, the death benefit for a certain policy will be low when compared to that of a different individual with good health paying the same premiums for an underwritten policy.
However, guaranteed life insurance policies have a major downside, which is a graded death benefit. This is also known as the waiting period. This means that the death benefit will not be issued if the insured passes away during the first two years after locking the policy. Instead, they will receive a return of their premiums which could also include the interest amounts, but also depends on the insurance company. So, if the insured lives past the first two years, the carrier should pay the full death benefit to the listed beneficiary.
Who Should Get Guaranteed Issue Life Insurance?
Guaranteed issue is the best for individuals who want to skip the underwriting process for most policies. Due to age and health-related issues, some people are usually unable to qualify for underwritten life insurance policies. Such individuals can qualify for guaranteed issue life insurance since it does not require the underwriting process. Regardless of your medical condition, you will be eligible for a guaranteed issue without undergoing any medical examination or answering medical questionnaires.
Most guaranteed issue life insurance policies are tailored for final expenses. So, if you don’t want to leave the financial responsibility of your burial to your loved ones, it would be a great option.
Unless your age limits you for a guaranteed issue policy, you should be able to qualify for one.
While anyone can qualify for most, if not all, guaranteed issue life insurance policies it may not be the best option for. Such a policy should be a last resort, and should only be applied if denied coverage for other policies. This is because other policies offer better benefits and better premiums when compared to guaranteed issue life insurance.
So, before opting for a guaranteed issue life insurance policy, make sure to try out all the other available options to you, even if it means taking a medical examination.
Benefits of Taking a Medical Exam
The underwriting process is not everybody’s cup of tea. And while skipping may look like a good idea, considering that you will get coverage anyway, taking the medical examination has its own benefits.
When you agree to take the medical examination, it shows that you have nothing to hide from your insurance company. Just make sure that you answer all questions truthfully if asked during the underwriting process. A person who has undergone through the underwriting process is far more advantaged than one who hasn’t as it offers security. This is because the carrier will have no reason to deny your claim if you had taken a medical examination.
Taking a medical examination is also a great way to know your health. Maybe you have a medical issue you are not aware of, but the underwriting process will help you know if any. Also, it is a great way to save money while at it since most full health checks can be costly. So, instead of spending more money, get the medical examination done when purchasing your life insurance policy.
If you are not willing to part with high premiums cash payments, then you should consider taking a medical examination. If you undergo the process and as long as you have no health issues, you will pay low premiums.
When You Should Skip It
Taking the medical exam is good, but there are times when you don’t really need it. See below for some of the cases when you should skip it;
If the policy is urgent, then you can opt to skip the underwriting process. Guaranteed issue life insurance policies with no medical exams will take a few days to get approved, making it a great choice if needed urgently.
Lack of Employer-provided Life Insurance
Most employers offer group insurance for employees. If this is not the case with your employer, then you might consider purchasing a no medical exam life insurance policy. This applies if you have a health/medical issue since most group insurance policies offer coverage for individuals regardless of their health.
Insurance companies usually set very high premiums for individuals with risky occupations and hobbies. Such individuals are riskier to insure than others since their occupations, hobbies, and other activities they frequently indulge in are dangerous. So, you can also skip the underwriting process to avoid hefty premium payments from conventional life insurance covers. No medical exam policy will be more lenient since it is tailored for specific individuals.
Chronic Health Condition
Another good reason to skip the medical exam is if you have a chronic health condition. Purchasing life insurance for a condition like diabetes can be ridiculously expensive with other insurance policies and even worse, you may be denied coverage by some carriers. To avoid frustrations, skip the medical exam.
Also, if you are old and want a financial cushion for your final expenses for your loved ones, then a no medical exam policy would be great.
Work With a Pro
Regardless of what insurance policy you choose, it is good to work with a pro during the whole process. An experienced life insurance agent will take you through different packages and advise on the best option depending on your situation. Also, a pro agent will know how to deal with your carrier anytime you want to make a claim or billing and when you need to change your coverage. Even better, they will work with you as your consultant throughout your insurance policy lifetime.