When it comes to getting life insurance, what clicks in the minds of many people is whether it is possible to get a life insurance policy without a medical exam or blood test. Most of the individuals looking for life insurance have poor health. And because of this, they have decided to go without the coverage simply because they fear either being turned down or paying high premiums. Others fear the medical test because they this could reveal some health conditions they never knew before and eventually end up paying high premiums. Now, the good news is that one can obtain life insurance coverage without undergoing any medical check-up, and this is referred to as no medical exam life insurance. It is a great way to get affordable life insurance and bypass the complex medical underwriting. Read on to understand what simplified issue no exam life insurance is and who it is best suited to.
What is No Exam Life Insurance?
No exam life insurance offers you the ability to buy a life insurance policy without having to undergo any medical exam. It means there will be no physical, blood or urine tests. Many people prefer this type of life insurance simply because it is quicker and consumes less time to acquire. It is also a perfect option if you have pre-existing health conditions.
Non-medical life insurance policies are available in both whole and term life. The death benefits for whole life coverage do not exceed $50, 000 while term life is limited to $500, 000. When applying for non-medical life insurance, you have to answer several questions regarding to your current health condition and your past medical history. The kind of responses you give will be used to determine whether or not you qualify for the coverage. The questions vary from one insurer to another, meaning you can be rejected by one company and get accepted by another.
Being honest on your application is good. If you lie about your information, the insurance company may be forced to terminate your coverage after two years if the truth is discovered. Remember that even without a medical exam, the insurer still has different ways to check if the information you provided is correct. For instance, the insurer can check your information on platforms, such as:
- The Department of Motor Vehicles
- Prescription databases
- The Medical Information Bureau
- Physician statements
No Medical Exam Term Life Insurance
If you cannot qualify for the standard life insurance policy, no medical term life insurance is your ideal option. Term life insurance policies are the cheapest types of non-medical exam life insurance. These policies offer a term length of up to 30 years and. You can qualify for the policy until you turn 75 years of age, but this depends on the company.
No Medical Exam Whole Life Insurance
With non-medical exam whole life insurance, benefits are limited to a maximum of $25,000 or $50, 000. This means that your beneficiaries can get a huge payout to cater for your funeral and other expenses. Nevertheless, it is not a big payout to cater for a mortgage or act as an income replacement for your family.
If you are fairly healthy or have pre-existing health issues that can prevent you from passing a medical examination, no medical exam is a perfect and affordable alternative. Also, it is an ideal option if you need coverage quickly. In essence, if you are in a good medical shape and want a quick coverage, the non-medical life insurance policy is the best option.
How Can You Get Life Insurance without a Medical Exam?
Getting no medical exam life insurance coverage is quite easy. Countless online insurers are ready and willing to offer this type of coverage. Most of these insurance companies have simple questionnaires, which contain general questions regarding your background and medical history. Generally, you are required to answer simple questions, such as, if you are a smoker or alcohol taker, your height and weight, and probably your recent medical history.
It is crucial that you answer the questions correctly to avoid inconveniences down the line. Giving correct information helps prevent the rejection of your potential claim. Also, it helps the insurer to determine the most suitable coverage for you. If the entry-level requirements are thoroughly checked off, the coverage is offered without further documentation.
What are the Options for No Medical Exam Coverage?
There are two types of no medical exam coverage; simplified issue and guaranteed issue. With simplified issue, you will have to answer a few questions regarding your medical history. Guaranteed issue is also referred to as guaranteed acceptance life insurance. With this one, neither will you answer any health-related questions nor undergo any medical check-up.
Simplified Issue Explained
As mentioned earlier, this particular option does not require any medical evaluation by a doctor, but a questionnaire about your health may be required. If you go by this option, you will be expected to provide information about yourself. For instance, you will be asked if you have ever been hospitalized or diagnosed with any serious disease. Also, the insurer may want to know if you have been denied any other life insurance policy.
The simplified issue can be offered if and only if the answers you provide for specific questions asked suit the underwriting guidelines of your chosen insurance company. For instance, the insurer may want to know whether you smoke or have been declared terminally ill. Also, they may ask if you reside in a hospital or any health care institution. If, for instance, you give a “yes” for the smoking part, you may still get the simplified issue life insurance policy, but with higher premiums.
Benefits of Simplified Issue
- There is no any medical test to be carried out
- The approval period can be days or weeks depending on the company. This is better as compared to other insurance policies.
- Death benefit becomes available immediately the policy is issued.
- It is cheaper as compared to guaranteed issue life insurance policy.
Risks of Simplified Issue
- The biggest risk is the high rates. Premiums can sometimes be 3-4 times higher than other life insurance policies.
Guaranteed Issue Explained
As opposed to the simplified issue, guaranteed issue life insurance does not require any medical questionnaire. It is simply a policy with no health questions. Although you will not be asked to provide any information about your medical history, you will be limited to a much lower level of coverage. In most cases, if you die within the first two years of your policy, the person assigned as the beneficiary will only be entitled to a death benefit equal to the payments you have made on your policy. Typically when you purchase guaranteed issue, your coverage holds as long as you continue paying your premiums.
Benefits of Guaranteed Life Insurance
The following are benefits you accrue if you opt for a guaranteed life insurance policy:
- A fully-guaranteed policy. As the name suggests, this type of no medical life insurance policy is a fail-safe one. It means no matter your situation; you must get the coverage. So, if you have been turned down for other life insurance policies, this should be your last resort. It is good for those who are currently in bad health condition and do not have any coverage in place. Also, it works well for those who want to supplement their existing coverage.
- It has a cash component value. Remember it is a whole life insurance plan, so it attracts a cash value over time, which grows out of the cumulative premiums. This, therefore, means that you can pull out the accumulated cash as a loan to cater for your emergencies. The cash starts to accumulate after five years since a greater percentage of the premiums during the early stages go to administrative costs.
- A perfect way to get covered if you are an ex-felon. With guaranteed issue life insurance, you do not need to wait any longer after probation. Remember with a standard life insurance policy you have to wait for at least two years before applying for any coverage. But with guaranteed issue, you can get the coverage instantly and stay safe.
Demerits of Guaranteed Issue Life Insurance
The following are demerits of getting coverage with no health questions asked:
- Highly expensive. Guaranteed issue policies are more expensive as compared to simplified issue and other standard life insurance policies. This is because you will get covered without any medical tests being done or providing any information about your medical history. As such, the insurance company will be taking a big risk, and that is why the rates are always high.
- Waiting period. Guaranteed issue policies have a waiting period. The waiting period applies within the first two years of your policy. Since insurance companies do not want to take a big risk, they usually set a waiting period for the payout of the death benefit. If you pass away within the first two years of your policy, the death benefit will comprise the premiums you paid and interest. But if death occurs after two years, your beneficiaries will enjoy full death benefit.
- It is a capped coverage. Guaranteed issue products come with caps for coverage amounts and age groups. For instance, the coverage you are going to get may not exceed a certain amount, depending on the carrier you choose. This is because the death benefit is only required to cater for expenses as a result of your death, such as hospital bills and funeral costs. Also, age is a limit since most of the companies give out coverage to people between 40 to 70 years.
Top 10 Companies that Offer No Medical Exam Life Insurance
As stated earlier, companies that offer life insurance without medical exam are never created equal. Below are the top 10 companies that make up the best choices for no medical exam life insurance:
Having been founded in 1928, Transamerica has become one of the most established life insurance companies in the United States. The company has an “A+” rating from A.M. Best Company. It has a solid market reputation with no complaints from previous customers. And because it ranks the top when it comes to customer satisfaction, Transamerica is the dream for anyone looking to get life insurance without a medical exam. Another great feature about this company is its living benefits life insurance option. The coverage amount can go up to $249, 999. Also, you can get riders, such as terminal illness, disability, critical illness, and chronic illness rider. And lastly, Transamerica offers great life insurance for the elderly. This, therefore, makes the company a great choice for the seniors.
This insurance company is “A” rated and offers the best no exam life insurance policies. Their policy is known as Term Made Simple. It is a level-premium term life insurance policy, which does not require physical, blood or urine tests. The policy offers great riders and has term lengths of 10, 15, 20, and 30 years. They offer ten-term life coverage to individuals aged between 18 and 65 years. Their no medical exam life insurance rates are highly competitive in the market.
American National Life Insurance Company
The American National Life Insurance Company has a rating of “A.” it is considered one of the best when it comes to the provision of no medical exam life insurance coverage. One good thing about this company is the availability of many non-medical life insurance options. The three common options include the following:
- Freedom Term Life Insurance. This one offers no medical term life insurance for 10, 20 or 30 years. It has a face amount of up to $250, 000 and the approval time is less than 15 minutes.
- ValueGuard Whole Life Insurance. This is a no medical whole life insurance policy whose face value amounts up to $150, 0000. The approval time is less than 15 minutes.
- Legacy Whole Life Insurance. This is a guaranteed whole life insurance policy with no health questions. The available coverage amounts up to $25, 000 for people aged between 50 and 80 years. It comes with a 2-year graded death benefit, meaning if you die within the first two years of the policy your beneficiaries get 110% of the premiums paid. The policy is characterized by fixed premiums and a fixed death benefit.
This “A-” rated company has been providing life insurance coverage for the past 123 years. It is renowned for delivering competitive no medical exam life insurance rates. Their term life insurance policy options comprise of the following:
- A Non-Med Term 350. This particular product best suits individuals aged between 18 and 65 years. It has a non-medical option, which offers coverage of up to $350, 000.
- Term 350 Plus. This one is available for applicants aged above 74 years or those who need life insurance coverage of more than $350, 000. The only drawback of Term 350 Plus is that it requires a complete medical examination.
Assurity also delivers the following whole life insurance policies:
- Simplified Issued Life Insurance Policy. The value of the death benefits is depended on the insured’s medical history. Applicants are provided with a health questionnaire to fill out. So, the kind of responses they provide is what determines the exact benefits.
- Fully Underwritten Life Insurance Policies. These policies require further underwriting and full medical exam.
- Single Premiums. This one has a guaranteed death benefit and a single payment. It has no recurring cost, but the upfront one payment can scare you away.
Besides, the Assurity Life also has a universal life insurance policy known as Premier Universal Life. This one provides clients with a flexible payment schedule for coverage amounting to $50, 000. One good thing about premier universal is that policyholders are allowed to obtain zero-interest loans against the value of the policy after eleven years.
The company offers a no medical exam life insurance product called Fidelity’s Rapid Decision Express. This policy offers quick approval, which is facilitated by the company’s technological integration system. With the Rapid Decision Express, you are required to answer a few health-related questions for assessment. If you pass the questions, the approval is instant, probably within 5 minutes. Their term lengths are 10, 15, 20 and 309 years, which vary by age.
Foresters is an “A” rated and established life insurance company that offers competitive no medical exam life insurance rates. The company delivers the following life insurance products:
- Advantage Plus Whole Life Insurance. This is a dividend-paying no medical exam whole life insurance policy. It covers up to $400, 000 and is available in either 20-Pay Whole Life or Paid-Up at 100.
- PlanRight Whole Life Insurance. This final expense policy the most popular life insurance product being offered by the company in question. It is a non-medical exam policy, which has guaranteed premiums with the lowest rates. To qualify, you have to answer a few health-related questions correctly. Also, the product has three benefits attached to it:
- Fixed Death Benefit. Beneficiaries are entitled to a payout of 100% of the face value since the beginning.
- Graded Death Benefit. During the first two years, there will be a limited death benefit. But beyond that, the death benefit becomes 100%.
- Modified Death Benefit. There is a limited death benefit within the first two years, and after that, it becomes 100%.
It is a great insurance company for people looking for life insurance with no health questions. Gerber Life insurance company has a rating of “A” and a cash value whole life insurance. It offers coverage of up to $25, 000.
North American Company
The company has a term life policy called Life Vue Simplified Issue, which is available in 15, 20 and 30-year terms. To qualify, you have to answer a few health-related and lifestyle questions. It is a no medical exam policy so you will not be required to undergo any medical test, provide a urine sample, or undergo a blood test. As such, this is regarded as one of the fastest no medical insurance policies out there. The policy offers coverage of up to $500, 000 for people aged between 18 and 50 years. The company also offers multiple underwriting classes for preferred, super preferred, standard, substandard, preferred tobacco, standard tobacco, and substandard tobacco.
Phoenix Life Insurance Company offers a unique no medical exam policy called Safe Harbor Term Life Express. This policy has great living benefits and is offered to individuals aged between 18 and 80 years. Its unique features include the following:
- It has term lengths of 10, 15, 20 and 30 years depending on age.
- The face amounts vary between $25, 000 and $400, 0000 based on age.
- Accelerated benefit riders for chronic illness, critical illness, terminal illness, and unemployment waiver of the premium rider.
- Conversion option.
Sagicor Life Insurance Company is rated “A-“. Due to its quick underwriting process, this company is regarded as the best for anyone looking for no medical life insurance coverage. There is no waiting period, so the approval is instant. The three rate classes offered by Sagicor are preferred, standard, and table. Their no medical exam term life insurance coverage ranges between $25, 000 and $500, 000. Also, the face value for non-medical exam universal life insurance lies between $25, 000 and $500, 000. Rates for both term and universal policies are highly competitive in the market. The company offers quick approval for both term life and universal life insurance policies. The application takes less than thirty minutes, including the waiting period for the approval.
Pros and Cons of No Medical Exam Life Insurance
Although no medical life insurance is available to most applicants, it is not ideal for everyone. Explored below are the pros and cons of life insurance without a medical exam.
- Fast approval and quick underwriting. Most non-medical life insurance policies get approved between 24 hours and two weeks. Especially for guaranteed issue, there is neither medical check-up nor health questions. As such, the approval time can even be as low as 12 hours.
- No medical exam. You do not need to schedule a time to go and meet with a nurse for medical tests. With standard life insurance, you have to undergo a medical test. To facilitate the process, you have to avail yourself for the test or a physician is sent to your place. This can be intimidating and time-consuming.
- No needles. Many people fear giving out blood or being pricked with needles. Remember needles have to be used if a blood sample is needed for testing. With no medical exam life insurance, medical tests are not carried out so there should be no fear of the needles whatsoever.
- Convenience. The process of buying no exam life insurance only involves a phone call. These policies can be convenient if the applicant does not smoke, does not drink excessively, and has no pre-existing health complications. If the above conditions are fully met, then the underwriter can proceed with the underwriting process without any medical examination.
As stated earlier, non-medical life insurance is not for everyone. Outlined below are cons associated with this type of life insurance:
- Higher rates. No medical exam life insurance policies attract higher rates as compared to other types of policies. Insurance companies take a big risk by offering life insurance coverage to individuals who have not undergone any medical test. As such, they tend to increase the rates to be able to recover any loss as a result of their actions.
- Capped coverage (limited to how much coverage you can get). Insurance companies have put limits on the amount of no medical coverage one can obtain. This, therefore, is not an ideal option for someone who needs full coverage.
- Not for high-risk clients with pre-existing conditions or dangerous hobbies. Insurers may reject your application if you have pre-existing health conditions. This is because the risk of death is way too high, and therefore the company does not want to suffer loss by covering highly vulnerable individuals.
- Non-medical exam life coverage has age restrictions, so it may not be available to some older individuals. For instance, applicants who are over 60 years may not qualify and are therefore advised to undergo a medical exam.
How to Apply for No Medical Exam Life Insurance
Buying no medical life insurance is quite simple. You should begin by contacting a fully licensed independent life insurance agent. Agency will require you to answer a few health and lifestyle questions. Such information will help the agent to match you with an insurance company that will be more lenient with your profile. Ensure you work with a renowned agency that has helped many people find the most affordable non-medical life insurance policies.
If your health is wanting and you might be denied the policy, your chose agent is going to advise you on the best alternatives to opt for. For instance, they can tell you to apply for a guaranteed issue policy, which has no health-related questions to answer. So, it is good to choose an independent agent that is well-informed, and one that is well-versed with all the available options for no medical exam life insurance.
After you are matched with a suitable company, you can proceed with the application process. It is good to understand that every life insurance provider has a unique approval process. Some companies approve quickly than others. Some of the non-medical exam policies can take up to four weeks to get approved, which is faster than when taking an exam. Others are so fast such that they can approve your application in as little as 30 minutes.
What Aspects Influences No Medical Life Insurance Rates?
With standard life insurance policies, companies use data they gather from medical examination to determine how long one is likely to live. For non-medical policies, there is no sufficient information to help make a comprehensive judgment on rates to be offered. As such, premiums will automatically be higher than for the traditional life coverage. Some of the aspects that may influence your rates include your lifestyle, age, sex, amount of coverage chosen, and whether you smoke. Also, if you opt for the simplified issue, your rates can be affected by the kind of answers you provide in the medical questionnaire.
Is No Medical Exam Life Insurance Worth It?
It is important to note that non-medical life insurance is more expensive as compared to traditional life insurance coverage. Also, no medical life coverage provides fewer options than fully underwritten coverage. Despite all this, non-medical exam life insurance can be termed as worth if you are faced with any of the following situations:
- You have serious pre-existing health complications and cannot qualify for the traditional life insurance policy.
- You have an alcohol or drug abuse record in the past five years.
- You have issues on your driving record in the past two years.
- You engage in high-risk hobbies, such as deep-sea or skydiving.
- Your job is high-risk, such as firefighting.
Any of the above scenarios may disqualify you from getting traditional life insurance. As such, you may choose to go for no-medical exam policy and get yourself covered. Non-medical exam policy is good if you need quick life insurance to help secure a business loan. These policies usually offer same day coverage or it can extend to five days. For traditional policies, approval can take several weeks or even months, depending on the company you are using.
Hiring an experienced independent life insurance agent is good. Agents represent multiple insurance companies and know which carriers can be lenient with your situation. Also, they are familiar with each company’s underwriting process. So, if you choose to work with a seasoned agent, you are no doubt going to land the most affordable deal out there.
The good news is you’re in the right place. At CFA insure we represent all the top A-rated companies on the market and can get you the best rate, at no extra cost to you! Give us a call today or use the quote engine on this page to request an application. Welcome to CFAinsure!