If you’re a lot older than you were than the first time that you purchased life insurance and you’re in poor health, then a no exam policy might be the best option available.
While this might sound like an obvious choice on the surface, there are a couple of pros and cons that you should be aware of.
The biggest advantage of no exam plans is how quickly you can be approved for life insurance. With a traditional policy, you’re going to wait 4 – 6 weeks before you’ll be approved for insurance coverage.
With a no exam policy, you get life insurance coverage in merely days. If you want to get life insurance more quickly, then a no exam plan is going to be a better option.
Another benefit is that the company will not get an idea of your overall health. If you’re in poor health and you have several pre-existing health conditions, then you could be facing higher premiums.
With a no exam plan, the company won’t get an idea of any health problems that you’ve been diagnosed with health conditions in the past several years.
On the other side of the coin, there are going to be a few drawbacks to these no exam policies. One of the most notable will be the higher cost of premiums. The purpose of the exam is to provide the company with an idea of your overall health, and without that exam, they are taking a much greater risk to provide you with life insurance. You will pay more for every dollar of insurance coverage.
Another disadvantage of these policies is that you will be limited on how much life insurance you can get. With most no exam plans, you can only buy around $250,000 worth of insurance protection.
Some companies are going to give you as much as $500,000 worth of coverage. For most, that isn’t going to be enough insurance protection. Not having a large enough plan is going to leave your family with debt and final expenses. Before you buy a no exam policy, you’ll need to calculate how much coverage that your family will need.
How Much Life Insurance Should You Buy?
The first number that you should throw into the equation is your debts and other final expenses. The primary goal of your life insurance is to give your loved ones the money that they would need to pay off any bills that you would leave behind.
The next number that you should look at is your annual income. If you have several people that are dependent on your paycheck, then you need to have a plan that is large enough to replace that income. Make sure that your family won’t have to sacrifice their standard of living.
Life Insurance for Seniors
Even as a senior, no exam life insurance can still be very affordable. There are plenty of companies that specialize in working with older applicants, and they will give you affordable life insurance. In fact, there are plans that you can purchase that will give you a smaller amount of coverage for a much cheaper premium. If you don’t have a ton of debt that your family would be responsible for, then you can buy a burial insurance policy.