Many of the traditional life insurance policies involve the applicant to go through a physical exam in order to get coverage. However, there are still a number of life insurance policies that do not require a medical exam. These are no exam life insurance policies.
How Exactly Does No Exam Life Insurance Work?
No exam life insurance provides applicants with a similar assortment of life insurance policies that traditional life insurance does. Often applicants find that the application procedure to get no exam life insurance is more relaxed and significantly less stressful. If you are considering applying for no exam life insurance, you can anticipate having to complete a written application as well as a phone interview with a company screener and insurance agent. After the phone interview, the insurance company will then take some time to verify your information with various agencies like the Motor Vehicle Records, the Pharmacy Database, and the Medical Information Bureau. Generally, applicants receive their results within two weeks.
While these can be highly appealing for many applicants, like anything, there are both benefits and drawbacks to no exam life insurance policies. Take a look at some of the different positives and negatives that go along with no exam life insurance.
What does Guaranteed Life Insurance Mean?
Often times when researching no exam life insurance you will come across term guaranteed life insurance, but what exactly does that mean?
Guaranteed life insurance means that even if you are applying with a preexisting condition or health problem you qualify. It is a form of no exam life insurance. One of the most significant concerns with guaranteed life insurance is the cost of premiums. Premiums for guaranteed life insurance are higher, and the death benefits are smaller than other forms of life insurance. Guaranteed life insurance provides comfort and coverage for people that might otherwise not be considered insurable. Including people with health issues like leukemia, blood disorders, lymphoma, kidney disease with dialysis, dementia, and cognitive tissue disorder.
When you decide to sign up for no exam life insurance, you are essentially signing up to speed through the process. Without having to go through the steps of having a medical exam, you can reduce the amount of time that a traditional application by about half. This can be a great benefit to people that are on the road a lot or have more things to do than hours in a day. This is also an excellent option for people that are looking to get fast approval. If you need life insurance for a divorce settlement or a bank loan, this might be the way to go. Applicants of no exam life insurance often find out their results in about a weeks time.
Another advantage to getting no exam life insurance is that you avoid having to through the stress of a medical exam.
Some applicants prefer the no exam life insurance option because it facilitates the process for applicants who only need a minimal amount of life insurance. For example, if you only need to pay for funeral and burial expenses.
Another significant aspect of no exam life insurance is the fact that this option provides approval to applicants that often would not be approved. It should be noted that no exam life insurance comes with six different packages, one of which is an inclusive life insurance policy that covers all applicants. This means that people with conditions like diabetes, Parkinsons, ALS, dementia, kidney disease, liver disease and more can sign up and receive coverage.
Likewise, those who tend to struggle with basic needs, including walking, dressing or eating or people who have a severe internal condition like respiratory limitations, a chronic heart defect or brain limitations can also benefit from no exam life insurance.
What are Some Drawbacks to Choosing No Exam Life Insurance?
The majority of life insurance companies that offer no exam life insurance coverage do so by charging higher premiums and offering lower death benefits. Specific costs vary depending on a few companies including what company you go with, your age, medical history and income.
It is crucial that applicants be aware that these costs can range significantly and are often considerably more than premiums on traditional term or whole life insurance. This significant increase is because insurance companies that offer no exam life insurance are taking on a great deal of risk. Because mostly everyone is approved for no exam life insurance, which means that death benefits tend to be paid out on a more regular basis than with other kinds of life insurance.
Another drawback to no exam life insurance is often one of the biggest causes of concern for applicants, and that is that often coverage of no exam life insurance ends at age 80. This can be problematic for a number of reasons and often adds stress to the applicant as they are forced to then apply for traditional life insurance with a medical exam component.
Should I Get No Exam Life Insurance for My Children?
When you have a child, the idea of something happening to them, or needing life insurance is unimaginable for most parents. However, it is essential that parents protect their children both in life and in death, by getting them life insurance in case anything were to happen. Doing this will provide your family with security in knowing that if something were to happen, you would have a death benefit to assist in covering the associated costs.
Many parents opt to get their children no exam life insurance when they are born. This is because there is often little to no medical history to be reported. No exam life insurance also provides parents with the ability to take care of their family without having to subject their child to what could be an invasive medical exam. While it is true that premiums for no exam life insurance are noticeably higher than those associated with traditional whole or term life insurance options, often because of the child’s young age and minimal medical history the premiums are on the lower end of the spectrum.
In a lot of ways the impressive number of advantages that are associated with no-exam life insurance, which include (but are certainly not limited to): getting approved faster, not having to take blood, being accepted even if you are deemed high-risk or have a pre-existing condition, facing less scrutiny and a much more convenient process. The disadvantages, however, maybe deal breakers depending on your situation. These include higher premiums, large jumps in the price of premiums when a term is being renewed and coverage that often ends at age 80.
The decision as to whether or not no-exam life insurance is the best fit for you is a private and personal decision. There are a multitude of things to think about and take into consideration. As with deciding upon any form of life insurance, it is vital that you are comfortable with all aspects of the policy, including stipulations, the cost of premiums and the amount that will be paid in death benefit. As with all life insurance policies it requires doing some independent research, budgeting and discussing with your loved ones what kind of arrangements you want when your time comes. If it is something that you would like to learn more about and discuss, we at CS Insured would be happy to assist you. Give us a call today.