At NoExamLifeInsurance.com, our goal is to find you the best rates possible. We are here to answer questions you have and ensure that your family receives the benefit needed to keep them financially secure.
The Problems With No Exam Life Insurance
Some of the significant drawbacks of these plans are the high premiums you will pay. Carriers usually require a medical exam so they can look for other health issues that aren’t present by just filling out an application. Without that medical exam, the majority of the risk will fall on the insurance company’s books, and to mitigate that you will be charged more than usual.
Another disadvantage is, they limit how much insurance that you can purchase without the medical exam. Most no exam policies will only give you around $350,000 worth of coverage, and honestly, for the average family in America that just isn’t going to cut it. While we specialize in helping clients find the perfect no exam life insurance plan, we would never suggest that anyone buy a plan that doesn’t give them the coverage that they need.
These are all significant problems with these plans, but the main drawback that we are going to focus on in this post is the waiting period. After you purchase one of these plans, you won’t have full coverage. For the first two years of the policy, if you passed away, your family would not get the full payout. Instead, your loved ones would only get 50% of the plan or a return of your premiums depending on the policy. After the first year, then the payout jumps up to around 75% of the payout if the insured passed away. For some people, this can scare them away from purchasing a no exam plan.
Luckily, there are a few options that you can choose from to avoid the waiting period and still get the coverage that you need at an affordable price. One option is to find a no exam or guaranteed issue plan that doesn’t have a waiting period. Some carriers have plans that will payout the full benefit upon death even if it occurs within the first year. These companies are not as common, and you might pay more every month for one of these policies, but they are available.
Should You Buy a No Exam Plan?
Before you purchase a life insurance policy, it’s important that you decide which type of plan is going to fit your needs the best. There are several questions that you should ask yourself before you purchase a no exam plan.
The first question that you should ask is, “how much coverage will my family need?” and this is one of the most important things to review. The main purpose of the policy is to provide your family with cash to pay off any debts or other final expenses. No exam plans are best for anyone that doesn’t have a mountain of debt.
Another question that you can ask is, “can I qualify for a traditional plan?” These plans are typically bought by people that can’t be approved for a traditional plan that requires an exam. If you’ve been declined for coverage in the past, then you might assume that you can’t get a traditional policy. Every insurance company differs, and all of them have various medical underwriting. That means that some companies are going to decline your application while others will accept you for a traditional plan.
Working With Independent Insurance Agents
If you want to save money on your life insurance and find the best policy available, the best way to do that is to use an insurance agency that brands themselves and independent. Different from the traditional agent, independent agents are able to get contracts with more than one carrier. Our agents have years of experience working with all types of clients and companies nationwide.