Depending on which form of no medical exam coverage that you’re applying for, you may still be asked certain questions about your health. The insurance carrier may also review your medical records, as well as other information such as your file from the DMV (Department of Motor Vehicles).
Because there are several different types of no exam life insurance, though, you need to understand the nuances, how – and how much of – the benefit will be paid out to the named beneficiary, and whether or not the coverage on the policy will expire after a certain amount of time.
What Makes No Exam Life Insurance Different from Other Types of Life Insurance?
With a regular, medically underwritten life insurance policy, it could take several weeks – or possibly longer – for an applicant to know whether or not they are approved and qualified for the policy. This is because, due to vast underwriting requirements – as well as the fluids samples that are taken for testing purposes – it can take a great deal longer for the insurance companies’ underwriters to make a decision.
Because the applicants who purchase no exam life insurance coverage are often more risky to the insurance company due to certain health issues, the amount of protection that is offered on these particular plans may not be as high as can be obtained via a regular, medically underwritten life insurance policy.
For instance, there are many life insurance carriers that will provide applicants with up to $25,000 – however, in some cases, carriers may offer as much as $400,000 in face value.
With a no exam insurance policy, though, coverage can essentially be approved, as well as issued, within just a few short days – and in some cases, the coverage may even be issued to the applicant on the very same day that he or she applies.
Types Of No Exam Life Insurance Offered
There are several different types of no exam life insurance policies. For instance, just as with medically underwritten coverage, there is both a term and a permanent policy choice. With a term option, the coverage will be issued for a certain number of years, such as 10 or 15. The coverage length – as well as the amount of the benefit that is offered – can vary from one insurance carrier to another.
Typically, as with other types of term life coverage, the premium that is charged, as well as the amount of the death benefit, will remain level throughout the time frame of the policy. Once the policy has reached the end of its limit, though, the insured will need to re-apply for coverage if he or she wishes to remain insured.
With a permanent no medical exam policy, there is both benefit protection and a cash value component. Many of the permanent no exam life insurance policies that are offered today are whole life.
A whole life insurance policy will provide a set, guaranteed amount of coverage, as well as a premium amount that is locked in and guaranteed never to increase – even as the insured ages, and even if the insured contracts a health issue (or an additional health issue) in the future.
Provided that the premium remains paid on a whole life insurance policy, the coverage cannot be arbitrarily canceled by the insurance carrier – other than for the non-payment of the policy’s premium.
Unlike a term no exam policy, a whole life option offers cash value where the funds within this component of the policy are allowed to grow on a tax-deferred basis.
The money that is in the cash value component can be either used like a savings account or a loan. This could be for the purpose of paying off debts, supplementing retirement income, and/or for taking a nice vacation.
Because of both the death benefit and the cash value component that is offered with permanent forms of no exam life insurance, the premium for these types of policies is usually higher than it is for a comparable amount of no medical exam term life insurance protection.
In addition, because term life insurance policies are often referred to as “temporary” insurance coverage, these types of policies may be a good choice if someone wants to protect the payoff of a home mortgage and/or other financial needs that will have an “ending” time.
Who Is A Good Candidate For A No Exam Term Life Insurance Policy?
While there can be many individuals who are a good candidate for purchasing life insurance in general, those who may wish to lean more towards a no exam term life insurance policy could include who:
- Are dealing with a health situation
- Are unable to qualify for a traditional life insurance plan because they have a risky occupation
- Those who may have lost their group life insurance coverage and need to replace it with individual term life insurance protection
- Those who are wishing to cover “temporary” needs, such as the payoff of a mortgage or the assurance that a child or grandchild will have the funds that they need for attending college
- Those who are wishing to purchase life insurance protection, but do not have an ample amount to spend on premium payments
Where To Find The Best Premium Quotes On No Exam Life Insurance Protection
Before purchasing any life insurance, it is key to understand what will be the best type and the amount of protection that you need. Today, there is a long list of different types of life insurance policies, and each may be better suited to specific needs.
When searching for the very best premium prices on no exam term life insurance coverage, it will be important to compare several different options before making your final policy decision. One reason for this is because often, the price that will be charged can differ – sometimes substantially – from one insurance carrier to another, even for the same policy parameters.
The best way to make a good and unbiased policy and a premium comparison is finding quotes from as many carriers as you can. This means contacting each company, asking about their policies, and rates for applicants with health issues. This sounds like it will take up a lot of your time because it will. That’s why you should work with us.