No exam life insurance lets you get life insurance coverage without having to undergo a medical exam first. It sounds like a sweet deal, but it’s vital that you look at all of the pros and cons before you decide if these plans are best for you.
As you probably know, when you apply for life insurance coverage, the company will look at your height and weight ration. If you’re overweight, then you’re probably going to be facing higher insurance premiums. For some people that are severely overweight or obese, there is a chance that they will pay drastically higher premiums or even be declined for coverage. For those people, a no exam policy could be a better option.
There are several subtypes of no exam plans, each of them is slightly different. There is a traditional no exam plan. These plans don’t require a medical exam, but they still will pull all of your health records and ask you a health questionnaire before they accept your plan.
Another type of no exam coverage is a guaranteed issue plan. These plans don’t reject anyone for coverage, regardless of health or any pre-existing conditions that you have.
There are quite a few benefits of these plans. The most notable is that you can get approved for coverage faster. With an average plan, you can wait up to a month and a half to get life insurance. With these no exam plan you can get coverage in just a few days. With some plans, you can get coverage in a matter of hours.
Another benefit is that the company is not going to get a picture of your current health. Without that picture, your health isn’t going to impact how much you pay for your life insurance.
There are a few drawbacks to be aware of. One of the most notable is that you’re going to pay more for your insurance protection. The purpose of the medical exam is to give the insurance company an idea of how much risk that you are. Without that medical review, they will be at a higher risk, and they will offset that cost by increasing your premiums.
Next, you will be limited on how much coverage you can get. Most no exam plans will be restricted to $250,000 worth of coverage. For many families, that isn’t nearly enough insurance protection.
Are No Exam Plans Right for You?
If you’ve been denied coverage in the past, and you assume that a no exam policy is your only option, think again. Each company is unique, and they all have various medical underwriting and rating standards. Finding the perfect company can be the difference in getting rejected for a policy or getting affordable insurance protection.